Income tax

Tax queries 729 views 6 replies

Arpit Pachisia

734 Points Posted on 19 June 2014

Respected sir,

One of my clients purchased a office in installment system for 15 lacs rupees. The first installment was paid on 01.01.2013 of Rs. 100000.00 and last installment on 31.5.2014. He paid total 15 lacs to the builder. By cheques in 15 installments.

Now, my client wants to execute sale deed of the office. Today the circle rate is 20 lacs.

Kindly let me know, whether he is required to execute sale deed on 20 lacks or 15 lacs.

The builder is asking to execute sale deed for Rs. 20 lacks.

Please let me know the situation!!!!!!!!!!

Arpit Pachisia

CA student

Replies (6)

Mihir

Wealth Manager

5293 Points Posted on 19 June 2014

The sale deed should not be less than the stamp value or else the difference shall become taxable.

Arpit Pachisia

734 Points Posted on 19 June 2014

in our case we have paid 15 lacs in insalments @ 1 lacs each. if we pay stamp duty on 20 lacs. still we are liable to pay tax on 5 lacs!!!!!!

we have to take stamp value as on agreement date or as on registered date ????

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 19 June 2014

sale deed will be executed for 15lakhs which was actually paid. but stamp duty shall be paid on value of 20lakhs.

JAINENDRA JAIN

ACS/CA

1668 Points Posted on 19 June 2014

sale deed should be executed on the basis of stamp value when first installment was paid subject to condition that such amount should be paid through any mode other thaan cash.

and if the consideration is lower than stamp value as on that date than difference amount is taxable under other sources.

subhash kumar jha

PROFESSION

445 Points Posted on 19 June 2014

if stamp value on the date of agreement is lower then that stamp value can be taken for the purpose of section (ii)(vii) provided part or whole consideration has been paid in other than cash on or before the date of agreement.