Capital gain on Transfer of property

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MURALI (Querist)

25 October 2010 assessee(purchaser)had acquired an house vide agreement of sale on 20.06.1990 for Rs.10 lacs (full payament). but he didn't get registered til now but took the pocession on the same date. the seller also declared as sale and paid the capital gain tax on 1990-91 itself.

but now purchaser wants to register the property in his name. the present value of the property is Rs.60 lacs.

the question is:
1) what price we have to mention in sale deed ?
2) sub registrar has agreed to register property at old price (10 lacs) only, but what is tax effect to seller
3) what is the actaul A.Y. and sale consideration. Is there any case laws regarding this

thanks in advance

sivasankar

sivasankar (Expert)

26 October 2010 Dear sir,
Kindly refer to the below link.
https://indiankanoon.org/doc/1685683/
As per recent punjab high court judgement ownership gets transferred once possession is given the buyer.
Registration is just a formality.
So all your worries are not correct.
Your LTCG problem is over in the year of sale itself.
But the stamp duty issue has to dealt with the help of your state lawyer.

MURALI

MURALI (Querist)

26 October 2010 Thanks Sir,

Section 50C will apply for this above case ?

sivasankar

sivasankar (Expert)

26 October 2010 Sir,
50-C will not apply since 50-C was not in effect for the A.Y.90-91.

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