charitable trust

This query is : Resolved

CA Chandan Agarwal (Querist)
Follow

27 July 2010 Assessee is a charitable trust. It had entered in to an agreement to sell a property @ Rs. 125000 in 1979 with its tenant.Payment had been received at that time but it was shown as advance received in Balance Sheet. No tax had been paid on this income at that time.Registration has been done on this 24th Sep. 2009. Market Value of property on this date is Rs. 74,64,000.

what will be tax implication of this transaction?
In which year Capital gain Should be charged?
How tax can be saved?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

27 July 2010 For the purpose of capital gains,the transfer is treated as complete with delivery of possession and when an agreement to sell immovable property is entered into or when such agreement is itself is a subject matter of the transaction. If possession is also given in the year 1979, year of transfer may be considered as 1979 and accordingly capital gains would have been computed in the year 1979.

CA Chandan Agarwal

CA Chandan Agarwal (Querist)
Follow

28 July 2010 thanx

If tax had not been paid at that year what will be tax implication?

Upgrade to CAclubindia Pro. Subscribe Now!