Income tax to buyer of property
This query is : Resolved
30 August 2016
HI,
If a property is purchased in less amount then the guide line then with the new law in 2014 , the Buyer has to pay income tax on the difference of the amount as that is assumed as the profit on that property.
I am not clear till the time property is not sold again by the buyer how he is entitled for the income tax on that property.
Second where will renovation cost will be calculated and considered in above calculation.
Third Is there any way to save the tax applicable in the above condition.
Fourth IF the property purchased in join account then how the income tax will be calculated , Will it be divided in all buyer equally or any one can be made responsible and pay the tax in above situation.
If a property is purchased in less amount then the guide line then with the new law in 2014 , the Buyer has to pay income tax on the difference of the amount as that is assumed as the profit on that property.
I am not clear till the time property is not sold again by the buyer how he is entitled for the income tax on that property.
Second where will renovation cost will be calculated and considered in above calculation.
Third Is there any way to save the tax applicable in the above condition.
Fourth IF the property purchased in join account then how the income tax will be calculated , Will it be divided in all buyer equally or any one can be made responsible and pay the tax in above situation.
30 August 2016
1 The difference amount will be treated as gift and taxed u/s 56 (2)(vii).
2 Taxed as above no need to wait for sale.
3 No way to save the tax applicable.
4 Will be divided and taxed.
2 Taxed as above no need to wait for sale.
3 No way to save the tax applicable.
4 Will be divided and taxed.
31 August 2016
Hi Seetharaman,
Thanks for quick reply, Here What if the buyer do not have amount to pay.
and what is about the reconstruction cost ?
Thanks for quick reply, Here What if the buyer do not have amount to pay.
and what is about the reconstruction cost ?
01 September 2016
1 No excuse for not having the amount to pay tax.
2 What is reconstruction.
2 What is reconstruction.
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