sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 PCIT vs. Perfect Circle India Pvt. Ltd (Bombay High Court)
 The National Company Law Tribunal (Amendment) Rules, 2019 notified
 Get income tax refund in one day from 2020
 Your ITR filing will soon get processed in just one day
 Here's how These new tax laws allow you to save more tax in FY2018-19
 Income tax exemption limit may be doubled to Rs 5 lakh in interim budget
 How to use home loan and rental outgo to save income tax
 Income Tax Department Income Tax Return Statistics Assessment Year 2017-18
 Section 80C limit: Should you use only life insurance to save taxes?
 Calculate your tax liability for assessment year 2019-20 here
 Here is how to maintain tax discipline in the last quarter of the fiscal

Income tax filing: Capital gains taxable in year of asset transfer
October, 10th 2016

As per Section 45(1) of the Income Tax Act, gain arising from the sale of a capital asset is taxable in the year in which transfer takes place.

I sold a plot of urban land during 2015-16, but did not receive the entire sale consideration as per deferred payment schedule. Do I need to offer entire sale consideration for capital gains tax in FY 2015-16 or in the year of receipt?

As per Section 45(1) of the Income Tax Act, gain arising from the sale of a capital asset is taxable in the year in which transfer takes place. Further, this section has to be read with Section 48 which starts with ascertainment of the full value of consideration received or accruing as a result of the transfer. The word ‘accruing’ in Section 48 makes it clear that entire sale consideration as a result of transfer of the capital asset is taxable in the year in which transfer takes place, irrespective of year of receipt. Therefore, you have to offer entire sale consideration for capital gains tax in FY 2015-16 even though you have not received the full amount in the said year.

I earned long-term capital gains on sale of house and claimed exemption under Section 54EC by investing in REC bonds after seven months when the bonds were available in market. Will I be eligible to claim capital gain tax exemption?

In order to claim exemption under Section 54EC, the long-term capital gains on transfer of asset are required to be invested in the specified bonds within a period of six months after date of such transfer. However, in the instant case, it was practically not possible for you to make the required investment within the specified time limit due to the unavailability of the specified bonds. Considering this, you may be allowed to claim the benefit of Section 54EC based on judicial pronouncements.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions