one of my client being an individual has jointly having 50% share with his elder brother purchased a agriculture land in financial year 2006-07(i.e.date of purchase was 30-10-2006}.Subsequently the same land was converted into commercial land in April,2010. Moreover the said Commercial land was transferred in F.Y.2010-11 by way of Sale deed (i.e.Date of registered sale Deed was of 31.03.2011).However the entire sales consideration of Rs.2,32,00,000/- is likely to be received in F.Y.2011-12 except only Rs.100,000/- received as cash in same F.Y. in which the Transfer took place & duly registered i.e. F.Y.2010-11.Till date both of brother has not filed I.T. return.
Now they want to file the income tax return relevant to F.Y.2010-11. Other data details are as under:- i) Total Purchase cost of land was Rs.1,20,000/ in F.Y.2006-07. ii) Total Transfer Expenses i.e. conversion charges Rs.20000/ in F.Y.2010-11.
Hence query is :- i) In which F.Y. Long term capital gain is to be taxed after keeping in mind that the maximum sales consideration is likely to be received in F.Y.2011-12. ii)what shall be I.T. liability along with Interest Calculation u/s 234A/B/C by presuming that the client has not paid any Advance Tax for the same F.Y.in which the Transfer took place.
Moreover by presuming that there is no other incomes in hands of clients.
Reply with complete solution & tax Liability along with Interest u/s 234A/B/C of I.T. Act at the earliest.
20 March 2012
tHE GAIN WILL BE TAXED IN THE YEAR 2010-11 I.E A.Y.2011-12 SINCE TAX WAS NOT PAID BY MARCH 2011 HENCE INTT UNDER ALL THREE SECTIONS WILL BE LEVIED PLEASE MAKE CALCULATIONS ON YOUR OWN U R A PRACTICING CA
20 March 2012
Thanks Mr Gupta. I know that Interest will be levied under all three sections as per I.T Act.However the confusion is as to 234C . that is whether the interest will be charged only for one month of march,2011 in which the long term gain arose/accrued or for maximum 3 Months relevant to last Quarter ended 31.03.2011.
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