One X (a partnership firm) sold a plot of land to Mr. Y (an Individual resident) in the year 1987. the agreement was signed and entire payment was done at that time. however the payment of stamp duty and registration was not done. Now in 2015 My Y want to pay the stamp duty and get the plot registered. There is no objection from X. However, X wants Mr. Y to sign an indemnity bond indemnifying X from all liabilities including any income tax.
Now the question is: Even though the entire transaction was completed in the year 1987 can there be any income tax liability for X today? Mr. Y will be paying stamp duty as per the valuation today. Plz advice. Urgent
30 May 2015
So far Mr. X has paid all his income tax liabilities at time of sale in the year 1987, there can't be any further tax liability on the part of Mr. X.
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