Admittedly, the Bombay Supreme Court ruled on 29 October 2018 that the income tax tribunal`s conclusion was correct and that the sale/sale of the property in question was not completed until 2011-12. The court also noted that the court is correct in concluding that on the facts, the agreement was executed on February 14, 2011, was an agreement on the sale of real estate. The law in force at the time required the registration of such an agreement. In any event, simply because it is registered, it does not automatically take on the character of a deed of transport or sale. Upon full reading of the agreement, the Income Tax Tribunal concluded that the sale or transfer was not completed at the time of the contract and that the transfer of the property took place when the remaining payment was made and the holding was returned to the purchaser, which occurred in the 2011-12 fiscal year. Capital gains were therefore taxable in the 2012-13 late year, not in the 2011-12 delay year, as the expert did in error. The Tribunal also found that the registered agreement was a sale agreement and not a sales contract. The Bombay HC decision has a broader impact on the taxation of capital gains on the sale of real estate. For the year in which the profits from the sale of a particular property become taxable, this decision does not affect as long as the registration date and the date of the final transfer are made in the same year.

However, it may affect the determination of the period during which the seller held a specified asset at the time of the sale/transfer. This will be the date on which all the conditions set out in the sales agreement will be met. Currently, the characterization of a property as long-term capital must take into account the planned transfer date on the basis of the agreement. With regard to the rental of capital, this is a lease agreement in which the lessor agrees to transfer the ownership rights to the taker after the conclusion of the lease period. Capital or financing leasing is long-term and not reseable. Description: In the case of a capital lease, the lessor transfers the ownership rights of the asset to the taker at the end of the lease period. The lease agreement gives the taker a bargai IN WITNESS WHEREOF the parties have put their hands and signatures on this contract and have signed after passing the terms of the same as a sign of its accuracy, on the date, month and year, before being written in the presence of the following: - 6. That the first party - the seller assured the buyer of the 2nd part that the property sold to the second party under this agreement is exempt from all kinds of charges that mortgages, donations, the sale, Gages, seizures, seizures, mortgages, prior agreement (s), order (s), order (s), order (s), order (s), acquisition, etc. and if a defect concerning the first part is found at a later stage, the first party is solely responsible for all costs, charges, damages incurred by the second part, which the second party may claim from the person and other characteristics of the first part by the seizure and sale of the second party.