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Capital gain which date to be consider

URMILA RAMOLA (CA) (29 Points)

15 April 2021

Which date to be consider for capital gain calculation

Date on the agreement 31st Mar 21

Date of registration 5th Apr 21

Date of possession 10th Apr'21

As per agreement possession to be given after making full n final payment which is made in Apr'21.

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9 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 15 April 2021

Date of agreement to sale should be taken

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sabyasachi mukherjee (27574 Points)
Replied 16 April 2021

Irrelevant querry
the querry should be
1. date of sale.
2 date of consideration received

basically its date of sale.
with indexation and without indexation.
that depends..

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 16 April 2021

query is regarding that what date should be taken for calculation of sales consideration and for calculating indexation benefits

sabyasachi mukherjee (27574 Points)
Replied 16 April 2021

It's amply clear.

The date of sale is the date of transfer of capital asset.

Please do not reply to irrelevant queries.

Shankar Rugge (376 Points)
Replied 16 April 2021

Rather than criticizing and giving unclear answer just reply date of agreement 31 Mar 21

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 16 April 2021

I have already answered it first

sabyasachi mukherjee (27574 Points)
Replied 17 April 2021

First you should try to know the full concept of capital asset.
then comes transfer of capital asset.
then capital gains
here mechanism works like this
1. an assesse opens a demat account
2. dematerialises share in physical form
or purchase online shares
3. sale such capital asset.
capital gain arises.

URMILA RAMOLA (CA) (29 Points)
Replied 19 April 2021

as per section 2(47):-

(v) any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882)

As per section 53A

Following conditions should be complied under Section 53A;

1. There should be a contract for consideration in writing and same should be signed by the transferor;

2. The contract should be for transfer of immovable property and from therein the term necessary to constitute transfer should be certainly ascertained;

3. The transferred should has taken possession of the property and has done something for furtherance of the contract;

4. The transferee should be ready and willing to perform his part of the contract; and

5. In this case even without execution of sale deed, the transferee acquires the right in the property and the transferor cannot claim any right in respect of property under consideration other than the rights expressly provided in the terms of contract.

In our case possession is handed over in Apr'21 and in the agreement also its mentioned that transaction will be treated as completed once the possession is given after full n final payment.