If the transfer of a property takes place later and is subject to other conditions, it is called a contract of sale. A sales contract becomes a sale if the conditions are met or if the transfer time of the property is counted. We can conclude that a deed of sale is obtained if it is subject to an immediate transfer of the property. Otherwise, it is a sales contract. On this blog, let`s come back to the differences between the sales contract and the deed of sale. A sales agreement is an essential document for any transaction related to the sale of real estate. It covers the broad contours of the agreement, including the details of the property, the consideration of sale, the brief commitments and the date on which the agreement should be concluded and the final deed of sale to be registered. The parties must clearly understand and fulfil their obligations under a contract of sale. Assessee claimed to have bought the agricultural land with an area of 2.74 hectares in Newata, Tehsil Sanganer, Jaipur empty agreement of 11.04.2007 for a counterpart of r. 50 lakes. In accordance with clause 2 of the agreement, Assessee paid 40.00.000 / – three payment orders from 10.04.2007 and a check from 11.04.2007 from Article 10 lakes. The details of the payments referred to in point 2 are as follows: – holding period for the purposes of the transfer u/s 2 (47) was taken into account from the date of the agreement to the sale rather than to the execution of the hero of the sales contract: during the audit evaluation, AO found that the valuation company had acquired agricultural land with a certificate of sale of 13.04.2010.
Assessee claimed a long-term capital gain on the sale of the land. AO rejected assessee`s claim and found that the land had been acquired by the company of the sales contract of 13.04.2010 and therefore calculated the short-term capital gain in accordance with the provisions of Article 50C. .