Question ID : 44560

LTCG When Sale Consideration received in Installments

Capital Gain on Sale of Urban Agriculture Land Date of Sale :- 20/03/2023 Sale Consideration:- 1 crore (Only 20 lakhs is received till the date as agreed in registry and remaining will receive in March 24) Indexed Cost of Acquisition:- Rs. 3 lakhs Possession Given and Registry done on 20/03/2023 Seller wants to take Benefit of section 54B (Purchase of another agriculture land) but amount is not received till the date of return filing and even now. Please suggest what to do ??

Liability for capital gain arises when title of the property is transferred to the buyer and it has no relevance with the payment of sale consideration. If sale deed is executed and all rights of property are transferred to the buyer on 20/03/2023,. capital gain on such property will be taxable in the F.Y.2022-23 and benefit of section 54B can be availed.