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capital gains

17 July 2018

My client has received part payment of sale consideration in c.y and has not yet received the remaining balance. What is its effect on calculation of LTCG

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4 Replies

Srinivas Pyata (543 Points)
Replied 17 July 2018

payment will not effect the tax liability i.e, it will not effect the long term or short term
date transfer remains same and from date acquisition to date transfer will be taken into account and not date of payment

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Prashanthi Neha (student) (36 Points)
Replied 17 July 2018

Should i show ltcg in current year itr for full payment

Z ( ) (2965 Points)
Replied 17 July 2018

As per the charging section of capital gains (S.45), capital gain accrues as soon as the property is transferred.

Therefore, income has to be exigible to tax in the period in which the transfer took place, i.e, irrespective of the payment criteria.

"Should i show ltcg in current year itr for full payment

Yes.

45. (1) Any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 54, 54B, 54D, 54E, 54EA, 54EB, 54F, 54G and 54H, be chargeable to income-tax under the head "Capital gains", and shall be deemed to be the income of the previous year in which the transfer took place.