Property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2016 I HAVE A PROPERTY AT SALTLAKE, KOLKATA WHERE PRESENTLY REGISTRATION IS NOT PERMITTED. BUT MY BUYER HAS PAID THE FULL AMOUNT ON UNREGISTERED DEED OF SALE. SHALL I LIABLE TO PAY CAPITAL GAIN TAX? AS WELL AS THE SAID BUYER IS LIABLE TO DEDUCT TAX @1% U/S 194IA.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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05 May 2016 Yes, you are liable for capital gains tax and TDS to be deducted from payments made to you, if the value of the property exceeds Rs. 50 Lakhs.

As per the definition of transfer as per section 2(47)....transfer in relation to a capital asset, includes-
i) the sale, exchange or relinquishment of the asset; or
ii) the extinguishment of any rights therein; or
......................
(v) any transaction involving the allowing of the possession of the any immovable property to be taken or retained in part performace of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882.

Since, you received the full consideration and possession handed over, it amounts to relinquishment of the asset or part performance as per Section 53A of the TPA, 1882 if there is a contract to this effect.

Rupesh Jain

Rupesh Jain (Expert)
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05 May 2016 yes you have to pay the tax capilta gain if it come after taking indexatiomn value.
and also buyer deduct the tds on payment if ampunt exceeds Rs.50 Lacs.