Capital gain in case consideration amount not received partially

[CABIJENDERKUMAR BANSAL]

Sir my client executed a sale deed of land of ₹ 50 lacs of which 5 lacs were received in advance and balance ₹ 45 lacs were to be received at the time of sale deed. ₹ 45 lacs cheques (30 & 15) were received but after registry, cheque of ₹ 15 lacs was dishonored. Now my client has filed a suit in court for this & verdict is still awaited. Capital gain to be calculated on total ₹ 50 lacs (total consideration or ₹ 35 Lacs(consideration received). or any other treatment is suggested?

AI Summary

Dispute Over Capital Gains Calculation: Should It Be on Full 50 Lakhs or Only 35 Lakhs Received? A client executed a sale deed for land valued at 50 lakhs, receiving 5 lakhs in advance and 45 lakhs via cheques. However, a 15 lakh cheque was dishonored, prompting a legal suit. The question is whether capital gains should be calculated on the full 50 lakhs or only the 35 lakhs received. One opinion suggests capital gains should be on 50 lakhs as it is based on sale consideration, regardless of receipt. Another opinion argues that if the consideration is not fully realized, the transaction is nullified, implying no capital gains should be assessed.