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Seller is asking to pay capital gain from me, which is illeg

26 August 2014

I am buying a property in Bangalore and cost of property agreed between seller and me is7000000, but as I need loan of 62 lakh from LIC so I added agreement value as 7281250 to get 80% of value.

Seller has signed the agreement and I paid 72813 Rs as TDS as per government rule of 1% if property is more than 50 lakh.

now when we are planning to go for registration , seller is asking for complete long term capital gain to be born by me(around 14 lakh) as he wanted registration value as 2743500 only.

I am stuck now and need help , what need to be done.

Legally i should not be worried about capital gain of seller

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5 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 26 August 2014

You are liable to pay stamp duty, registration charges, legal fees, and 50% of society transfer charges. You are not liable to pay long term capital gain of the seller under any circumstances.

1 Like

Neeraj Tewari (IT) (26 Points)
Replied 26 August 2014

Originally posted by : Mihir
	You are liable to pay stamp duty, registration charges, legal fees, and 50% of society transfer charges. You are not liable to pay long term capital gain of the seller under any circumstances.

Thanks for the response.

What should I do as Seller is pushing for the money and I cannot go back as I already started my woodwork worst 300000 Rs.

Is there is any legal way to challenge this or convience the seller about this.

Neeraj Tewari (IT) (26 Points)
Replied 26 August 2014

Originally posted by : Mihir
	You are liable to pay stamp duty, registration charges, legal fees, and 50% of society transfer charges. You are not liable to pay long term capital gain of the seller under any circumstances.

Thanks for the response.

What should I do as Seller is pushing for the money and I cannot go back as I already started my woodwork worst 300000 Rs.

Is there is any legal way to challenge this or convience the seller about this.

Mihir (Wealth Manager) (5293 Points)
Replied 26 August 2014

Go through the draft of sale deed. If there is no such clause of you paying him such amount, then he has no right to demand such money. You may request him, write a letter also, and if that does not work, send him a legal notice. Who is in possession of this property now?

Tax Care India (https://www.taxcareindia.com) (39 Points)
Replied 30 August 2014

Originally posted by : Neeraj Tewari

The seller capital gain is subject to at what rate he brought property and in which year. He need expert advise on same as 14 lac seem to be very high amount in terms of LTCG.

You are not liable to pay any taxes on behalf of seller. Your only libablity was to deduct 1% tax and deposit to IT-Department.

Thanks,

Tax Care India

https://www.taxcareindia.com

info @ taxcareindia.com

I am buying a property in Bangalore and cost of property agreed between seller and me is7000000, but as I need loan of 62 lakh from LIC so I added agreement value as 7281250 to get 80% of value.

Seller has signed the agreement and I paid 72813 Rs as TDS as per government rule of 1% if property is more than 50 lakh.

now when we are planning to go for registration , seller is asking for complete long term capital gain to be born by me(around 14 lakh) as he wanted registration value as 2743500 only.

I am stuck now and need help , what need to be done.

Legally i should not be worried about capital gain of seller