Income tax, Capital gains on plot sale purchase via Power of Attorney
This query is : Resolved
20 June 2023
Mr. A purchased a plot from person Mr B in Gurgaon through POA in 2021. Hence A paid 40 lakhs to B.
Mr. A then sells the plot to Mr. C through POA in 2023 in 60 lakhs. Since there is no Sale deed or registry happened, how capital gains for Mr A would be calculated, while filing his taxes?
Mr. A then sells the plot to Mr. C through POA in 2023 in 60 lakhs. Since there is no Sale deed or registry happened, how capital gains for Mr A would be calculated, while filing his taxes?
20 June 2023
Offer Rs. 20 lakhs under head IFOS.
20 June 2023
Thank you Dhirajlal sir. My doubt is IT dept would see amount of 60 Lakhs deposited in Mr C account, so will consider that as Income. Would IT dept treat showing 20 Lakhs (Instead of 60 Lakhs) in IFOS as underreporting of income?
20 June 2023
You have proof of Rs. 40 lakhs payment or not?
20 June 2023
Yes Mr C has proof of 40 L payment. But wont IT dept send notice once they see only 20L in IFOS when amount received from sale is 60L
20 June 2023
Give break up of total amount over expenses incurred.
20 June 2023
Do you have Sell agreement along with POA?
20 June 2023
Yes, The agreement of sell is there with POA. Breakup is simple all money is for plot only. no construction
20 June 2023
In that case you can declare it under Capital gain over rights over an property, if you have possession letter along with sale agreement..
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21 June 2023
Thank you sir. Is it also necessary to show deducted TDS 1% under 194s
21 June 2023
Yes, you can claim the TDS deducted against capital gain offered.
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