The seller of the property in indirect sales after receiving the agreed consideration, provides possession of the property mentioned and holds some or all of the following documents: A deed of sale is a legal document that proves that the seller has transferred the absolute property to the buyer. Through this document, the rights and interests of the property are acquired by the new owner. A sales statement usually consists of the following information- It may be noted that just because the total consideration has not been received does not mean that the agreement will not lead to a transfer of ownership. There may be different other conditions that can be imposed on buyers and sellers to make the sale complete. If the seller agrees to treat all or part of the sale consideration as a loan to the buyer and not fulfill other conditions, the date of the agreement and registration will be followed by a delivery date and other consequences. The M/s Talwalkar Fitness Club had agreed to sell an apartment for Rs 2.2 crores and had received an advance of Rs 20 Lakhs against the agreement. The sale agreement was executed and duly registered on February 14, 2011. The agreement had a clause stipulating that the sale/transfer would come into effect, with the payment of Rs 2.2. In accordance with the terms of payment provided in the agreement, the final payment must be made before May 26, 2011, i.e. in the following year. In accordance with the terms of the contract, the property must also be remitted against the full payment of the sale consideration. The seller was also required to pay maintenance and other costs until the property was returned. Since the date of the final payment and detention of the agreement and the date of the final detention fell in two separate years, a dispute broke out between the tax authorities and the taxpayer during the year in which the proceeds from the sale of the property would become taxable.
The Income Tax Office considered the registration date of the property to be the date on which the transfer took place and therefore imposed capital gains in the 2011-12 late year.