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Capital gains

Tax queries 367 views 1 replies

An NRI (male) had purchased property in FY 2005-06 for 60 Lakhs. He has sold the said property for 5 crores. In 2010 he bought a new property for which agreement is executed on Jan 2012 for 6 crores. Till date he has paid 3 crores out of which 1 crore was paid in calendar year 2012. The posession of the same is to be received in December 2015. The balance payment of 3 crores is to be paid within next 2 years. So whether deduction deduction u/s 54 will come ? Also please let me know when can be he considered as the actual owner - when he gets the possession or when the agreement is executed.

The CG for the property sold comes around Rs. 3,97,14,286/- [ Sales consideration - 5 crores, Acquisition value - 60 lakhs, ICOA - 1,02,85,714 ]

The NRI also has 5 other properties in India.

Replies (1)

Parimel

Administration

41 Points Joined January 2013

in my opinion, the possession of the property is the criteria to decide the issue of transfer of property in his name. But the possession is required to be in completed form. You will have to refer to section 53A of the Transfer of Property Act, to have a better idea.