Transfer of Immovable Property., Income Tax

[shwetal oswal]

Registered Agreement to sale has been executed in FY 2021-22 and possession of the immovable property has been given to the transferee.

But consideration will be received in installments in next 5 years and final conveyance will be executed after full payment has been received.

In which year will the transfer be considered?

In FY 2021-22 or in the year in which final conveyance will be executed?

Posts / Replies

[ARVIND JAIN]

I believe it should be the year of Agreement + possession , irrespective of the receipt of consideration as the same should be shown as receivable. Its just instead of Bank you are providing the instalment facility to the buyer.

[Shilpi Jain]

If its a unit sold before completion certificate is received - then assuming it is a supply of service, the moment possession is trasferred, service is complete and within 30 days invoice to be issued and tax to be discharged.

If not, no GST liability.