Capital gains - Advance received


New Member
Sale of House property
Sale value Rs 40 lakhs.
Advance obtained in FY 2016-17 – Rs 30 lakhs
Final Settlement in FY 2017-18 – Rs 10 lakhs. (Sale deed prepared in FY 2017-18)
Is there any capital gain tax for AY 2017-18?

Can we show Sales proceeds for AY 18-19, Rs 40 lakhs even though advance was obtained in AY 2017-18?
It is possible for an assesse to receive some advance in regard to the transfer of capital asset. Due to the break down of the negotiation, the assesse may have retained the advance. Section 51 provides that while calculating capital gains, the above advance retained by the assesse must go to reduce the cost of acquistion. However, if advance has been received and retained by the previous owner and not assesse himself, then the same will not go reduce the cost of acquistion of the assesse.