Sanjeev (Owner) (36 Points)
18 March 2014A gets a plot of land from lessee of a housing society under Ppower of Attorney and Agreement to sell for a consideration in 2008. A did not apply for the transfer of plot in his name. Now A wants to sell the plot to B under further Power of Attoney and Agreement to sell for consideration.
Is this transaction, for income tax purposes, the profit made by A will be termed as Long term capital gain or A has to show the profit as his income?
Thanks in advance for your replies
Mihir
(Wealth Manager)
(5293 Points)
Replied 19 March 2014
Agreement to sell is not a valid transfer document where the stamp duty also is not payable. Executing a sale of a plot via a agreement to sell to evade stamp duty is risky.
Sanjeev
(Owner)
(36 Points)
Replied 19 March 2014
Is stamp duty payable if the agreement to sell is made between family members? Power of Attorney as well as Agreement to Sell is being made between father and son. The purpose of the transfer is so that the son can transfer the title in his name from the housing society.
Further the father has doubt that the consideration received from son can be treated by Income Tax authorities as income in his hand rather than Long Term Capital Gain.
CAclubindia
