Cancellation of registration deed after receiving notice from incometax department

Yes , as per income tax law capital gain arise on transfer of capital asset. And sale value shall be consider sale deed value and FMV (fair market value) which ever is higher.
But there is a relief you shall consider as per your sale deed, you must contact with good valuer/ mohori/lawyer.
But registration feea should be bas

should be based on Fair market value, which basically be born by buyer.

I take assumption you as a seller.

Thanks for your early response ANKUR TAH , but my specific doubt is that wether cancellation of sale deed after receiveing incometax notice is valid or not???   if valid then what is the procedure for cancellation of sale deed???

As per my opinion it should be valid if no procedure happens yet.

Cancellation of sale deed is possible but for that there should be a mutual consent and a good reason to cancel that.For this you shall have to file a suit in a civil court.

As it is an ancestral property, one of the two sons was not signed the sale document. So can we cancel the sale document on this ground???? Is it possible to show this cancellation of sale deed to income tax officer to avoid tax burden of Rs.30 lakhs(Rs.40 L - Rs.10 L) in the hands of buyer and seller? because we are cancelling the sale deed after receiving notice from incometax department.