I bought a flat for 50 lakhs in bangalore in 2009. In my sale there were totally 3 parties are involved. Builder, First buyer who was in agreement with builder while the property was under construction and me.
So once the flat was ready for possession we executed a tripartite agreement for bank loan purpose that first buyer had agreed to transfer the ownership to my name and finally builder registered the flat on my name.
We did the registration as per initial agreement between builder and first buyer for 26 lakhs(consideration value). I paid total of 50 lakhs to the first buyer through bank loan and have full documentation for the same. So no black money is involved.
Now when i sell my flat for 60 lakhs what would be the value that is considered by income tax dept as buying cost. Is it 50 lakhs or the 26 lakhs.
Please let me know. Usually whatever the value which is mentioned in sale deed as consideration value is taken as buying price(for income tax capital gain calculation purpose). But in my case builder said he can register the property as per the first agreement. So please help me on this.
CAclubindia
