Taxability year of capital gain

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IF Mr. X sale Land to Mr. Y on 27.03.2015 and Mr. Y paid consideration through Cheque and both the parties made mutual agreement that Possession of Property will be hand over after clearing full consideration.

Consideration clear in 10.04.2015 and possession givne by Mr. X to Mr. Y.

Question is that in which Year Capital Gain will be taxable.

Replies (3)

It will be taxable in the year in which deed got registered . If sale deed got registered on 27/03/2015 then it will be taxable in FY 2014-15. If sale deed got registered on 10/04/2015 then it will be taxable in FY 2015-16.

Under Section 2(47), ‘transfer’ includes not merely sale, exchange, relinquishment, etc. It also covers 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 ToP Act

Than sir what about this definition.

Yes correct but as you have mentioned that property is sold on 27/03/2015 it means deed got registered on 27/03/2015. It means property is sold in FY 2014-15 though the possession is given in next year. Second situation is if possesion is given at 27/03/2015 and deed got registered on 10/04/2015 then in that case capital gain will arise in FY 2014-15 only as possession is already given though deed is registered next year. 

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