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TMI BlogCalculation of Capital Gain in case plot is alloted by Govt. and payment made in installments.X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts of the case are as Follows: Assessee was alloted a plot on 15/06/1999 Initial money paid Rs.1400000 Installments Paid on different dates. 15/03/2000 : Rs. 750000 15/09/2000 : Rs 750000 15/03/2001 : Rs 750000 15/09/2001 : Rs750000 each installment includes the amount of interest amounting Rs 150000/- Pls tell me the calculation of Capital GAin the assessee has sold th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said plot for Rs.2.5 crore (Stamp Duty Value) - Reply By CA GOPALJI AGRAWAL - The Reply = First determine the date of transfer the property from authority to allotte as per section 2(47) read with section 53A of the Transfer of property act. The total sum (principal amount) as on the date of transfer has to be taken in account. Instalments are just a mode of financing and would not change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transfer date. The indexed would be applied on total principal amount from the date of transfer. - Reply By Ankur Simghal - The Reply = Sir, CA GopalJi aggarwal First of all thank you for ur reply. Do I have have to index COA in FY 1999-2000 Or Indexation has to be done on payment date basis.( inclusive of interest or not) - Reply By CA GOPALJI AGRAWAL - The Reply = from the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of possession. - Reply By Ankur Simghal - The Reply = Thank you sir for your instant reply. Sir, is there any corresponding supporting to it or it is in general practice.. - Reply By DEV KUMAR KOTHARI - The Reply = The date of possession is the date of acquisition so CII for that year wil be applicable on cost of acquisition. On accepting posession, liability for entire cost of acquisitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that is full amount , is incurred (includign instalments (principal and interest both). A credit is allowed to pay Rs.three lakh in four instalments. Therefore, entire cost of acquisition that is Rs. 14 + 3 = 17 lakh will be eligible for applicaiton of CII of the year in which possession is taken. In such circumstances interest is part of cost of acquisition as per some of judgments of High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourts on section 55 as well as on section 43(1) in whcih it was held that amount payable including EMI is actual cost. In section43(1) an amendment ahs been made, however, for S. 55 the entire amount including interest can be considered as 'the cost of acquisition' for computing capital gains. Disputes may however arise. - Calculation of Capital Gain in case plot is alloted by Govt. and payment m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade in installments. - Query Started By: - Ankur Simghal Dated:- 7-1-2014 Income Tax - Got 5 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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