Question ID : 38021

SEC 194IA

Dear Sir, We have received an consideration of Rs 2 Cr from a party against sale of land on 29/09/2018. The party has not entered into verbal agreement that it will do the registry in May 2019. We have handed over the possession to the party. So you are requested to kindly guide in which year we should account for the income A/y 2019-20 to A/y 2020-21.

Answer ID : 76346

It is an agreement to sale though not formalized in writing. The question of capital gain does not arise unless the property is registered in the name of the buyer. There is a gap between the cup and the lip. So it should be taxed in the AY 2020-21.

Answer ID : 76356

Income should be booked in the AY 2020-21.

Answer ID : 76357

Income should be booked in the AY 2020-21.

Answer ID : 76407

The income or loss will be shown in the year in which the registry of the land is done

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