TAX ON SALE OF PROPERTY

[pradeep kumar l]

Sir, In AY 2015-16, I have paid income tax for the receipt of share of amount against sale of property. Part of the amount was credited in my Bank account only in 2016-17 (in April 2015). Now in my ITR for AY 2016-17, there is a query for the amount credited in the bank account. Shall I reply that this is the amount received as against the transaction shown in my ITR for AY 2015-16 and tax has been paid for that transaction?

[DR.MARIAPPAN GOVINDARAJAN]

Yes. You may reply with documentary evidences and calculations for the year in which you have paid tax in full.

AI Summary

Taxation of property sale receipts: respond to later-year query by proving the amount was declared and tax paid in the earlier assessment year. Where sale proceeds were declared and tax paid in the earlier assessment year although part credited to bank in a later year, respond to the later-year assessment query by submitting documentary evidence and calculations proving the amount was declared and tax paid in the earlier assessment year, including sale documents, bank statements, and reconciliations linking the credited sum to the earlier return.