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Are the sale proceeds of year-end transactions considered in the same year or the next?

Dhirendra Kumar explains how year-end mutual fund transactions are considered

When I sell a share or a mutual fund unit on March 30 or 31, and the sale proceeds are received in the next financial year, will the transaction be treated in that same year or the next year?
- Swapan

It will be considered in the same year. The reason being, the principle of accrual accounting. The contract note will have the transaction date of that year itself. Similar accrual basis of accounting is followed in other businesses as well where revenue or expenses are recorded on the transaction date itself rather than when payment is received or made.

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