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Capital gains

31 August 2019

Dear Sir,

One of my client is selling a land succeded to him from his late father the sale price is 80,00,000 for which a token amount of 15,00,000 was received during jan 19 is the said amount of 15 lakh is subject to capital gains???

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5 Replies

Pranav Aggarwal (525 Points)
Replied 31 August 2019

if date of transfer exists in PY 18-19 then u have u pay the tax as LTCG and

POH - from date when father acquired the above property

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Vinay Jaindani (188 Points)
Replied 31 August 2019

the transfer has still not taken place just a token amount is received the said transfer can also b cancelled if the deal doesnt goes as per the terms...

Pranav Aggarwal (525 Points)
Replied 31 August 2019

no treatment in capital gains in this year

further if in 18-19 assese forfeited the above amount I advise you pls show that amount as income in Income from other sources.

Kapadia Pravin (17259 Points)
Replied 31 August 2019

Token money received of 15 Lakhs will remain as advance deposit only till the execution of agreement.
LTCG will arise when agreement is executed.

You don't have to do anything in ITR for AY 2019-2020.

Shivam RC (Student) (23683 Points)
Replied 31 August 2019

Agree with Kapadia Pravin Sir...

The Land is still not Transferred. Only a token money has been received. Capital Gain will be taxable only after the Execution of Agreement.