Re: Capital Gain

Sale Deed of property was executed suppose in Jan 2017. Payments were made by six cheques dated 07.01.2017, 07.02.2017, 07.03.2017, 07.04.2017, 07.05.2017, 07.06.2017. All the details of cheques were mentioned in Sale Deed. The property was purchased long time back. It is a case of long term capital gain. My query is whether the sale will be considered in F.Y. 2016-17 (AY 2017-18) or in F.Y. 2017-18 (AY 2018-19). As the last cheque was encashed in F.Y. 2017-18 so capital gain should be considered in A.Y. 2018-19.

Please Clarify

One has to read the clauses in the agreement and  has to see is there any right of revocation if the full consideration is not paid .  One ha sto see when the sale deed in registered and possession was given .  If possession was given on receipt of full consideration ie om 7 -6 2017 , it will be taxable in the AY. Year 2018 -19  .  if possession was given on 7 -1 2017  it may be taxable in the AY 2017 -18 though the amount was received in instalment .  In Chaturbhuj Dwarkadas Kapadia v.CIT (2003) 260 ITR 491/ 129  Taxman 497 /180 CTR 107 (Bom.)(HC)  the court held that  considering the terms of the agreement the court held that date of agreement of development rights is relevant date for determination of capital gains.

 

  

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