CG Tax on sale of residential property

I would like to know when do I need to pay Cap Gain tax (20%+4% cess on it) if agreement of sale was registered on 8-9-22 but and 73% of sale consideration was received on 21-9-22?
Is CG Tax payable in quarterly instalments or in one shot? what’s the rule?
I’ve not made any CG Tax payments so far - does it mean I’ve to pay any interest? Pl reply. Thanks.

Hi @rajesh_vora

For the capital gains on the sale of immovable property, a capital gain arises at the time of transfer of the property. So, in your case, it is 8 Sept 2022 as the sale registered on that date, and hence was the transfer of property done.

Tax on capital gain is payable in one shot at the time of filing of the return, but if the tax payable exceeds₹10,000 then advance tax is payable. Advance tax is calculated and payable quarterly.
Also, interest @ 1% is levied per month or part of it on the deferment of advanced tax payment u/s 234C

So in your case, advance tax is payable from 15 September 2022 up to 45% of the net tax payable and till 15 December 2022 up to 75% of the net tax payable. Since you have not made the advance tax payment for 2 quarters, ie, September and December, interest u/s 234C shall be levied.

It is advisable to pay your advance tax dues as soon as possible to avoid any further interest u/s 243C and 234B.

You can use this tool to calculate your advance tax or book a MEET for expert assistance with your taxes.

Hope this helps.

Thanks Shrutika for your prompt and expert reply. You didn’t reply with respect to “73% of sale consideration was received on 21-9-22” - doesn’t that mean that at least (if not more) 73% of total CG tax payable is due only on 15-12-22 or on 21-9-22? Note that seller paid this amount after agreement registration because his bank (PNB) took longer time to disburse housing loan that entire cheque was 73% of total sale value of house. Pl reply. Thanks.

Hi @rajesh_vora,

The capital gains arise on the date of transfer, hence the date on which the payment is received is not relevant for the same.

In your case, the date of transfer is 8 Sept 2022, so advance tax is payable on the next due date of advance tax, ie, 15 Sept 2022.

Capital gain is calculated on the entire sales consideration. And hence, advance tax payable is to be calculated on the entire capital gain arising on the sale consideration. So the amount and date on which the amount is received are irrelevant.

So, for example, the capital gain is ₹10,00,000. The entire sales consideration is ₹30,00,000 out of which ₹25,00,000 is received and ₹5,00,000 is remaining.
In this case, the tax is 20% +4% on the CG which is ₹2,08,000.
Advance tax is payable at 45% of the net tax payable (45%* 2,08,000) till 15 Sept and 75% till 15 Dec. (75% * 2,08,000)
The amount whenever received is not relevant, tax liability arises on the date of transfer.

Hope this makes it clear!

Got it; thanks Shrutika.

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i did not understand : how did u calculate 208000/= ?

45+75 =120

the total should come 100%

am i right ?


The calculation is as below:
10,00,000 * 20 % = 2,00,000
Cess at 4% = 2,00,000 * 4% = 8000
So, total = 2,00,000 + 8000 = ₹2,08,000

For the advance tax calculation,

  1. 45% of the net tax payable = 2,08,000 * 45% = 93,600 is payable by the due date of 15 sept
  2. 75% of the net tax payable = 2,08,000 * 75% = 1,56,000 is payable by the due date of 15 Dec

This means only the differential amount (1,56,000 - 93,600) needs to be paid by the next due of the next quarter.

Hope this helps.

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Just one minor Q: Since cap gain on sale of old home in Mumbai given high amount, the total income in FY exceeds Rs50 lacs and hence surcharge on tax is triggered. But isn’t capital gain on sale of old home is exempt from this surcharge because its not recurring income but sale of asset. Pl clarify.
Besides, isn’t it better idea to pay CG tax on old home in separate challan along with interest payable and rest of adv tax/SA tax in separate challan?

@CA_Niyati_Mistry if you can help here.

Hi @rajesh_vora,

There is no such exemption of Surcharge on Capital Gains Tax. You will have to pay surcharge on the capital gains earned by you on sale of old home.

There is no such requirement of paying tax on different incomes through different challans. At the time of filing ITR it will be shown as total tax paid only. If you want to pay tax through two different challans for your convenience you can pay through two challans also.

Hope this clarifies!

Yes, thanks Niyati for you quick revert.