Capital gain

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This query is : Resolved

Pavan Agarwal (Querist)

19 January 2012 Hi
Can seller pay the stamp duty charges himself on sale of property instead of buyer and then claim it as expenditure on transfer of sale and thus reduce the sale consideration on sale of property. This will reduce capital gain tax. Does Income Tax Act allows such benefit to be claimed, if so under what provision. Is there any evidence available like case law or any write up etc to demonstrate such an adjustment.

CA Shiv

CA Shiv (Expert)

19 January 2012 In case of Sale deed the purchaser is liable to pay the duty.. And so seller cannot pay the duty.
Also the buyer will claim such expenses as cost of aquistions in future when he sells the property.

in case of sale deed purchaser is liable to pay stamp duty. In case of lease lessee, In case of power of attorney executing party, In case of Certificate of sale on auction of property the purchaser, In case of exchange deed both parties equally, In case of partition deed, all the parties in proportion to their share are liable to pay stamp duty

Guest

Guest (Expert)

19 January 2012 Capital gain tax can be reduced by seller by paying stamp duty and claiming as transfer expenses.

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