Income tax on property purchase

585 views 2 replies

mudit garg

business

35 Points Posted on 11 March 2013

dear sir,

i entered into agreement of sale with a prty in the month of may 2012 . the agreement was notorised and alomost 38% payment has been made by mode of cheque.

effective 01.01.2013 ready recknoer price of the property has been increased 12 times.

in this case will i be liable for differential tax liability as per new income tax laws effective 01.04.2013 as the supplemental lease deed can only happen after that.

Replies (2)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 12 March 2013

Your tax liability would arise only if sell the property. Else no tax is required to be paid by you.

However when you let-out your flat on lease then the lease rent recd would be taxable as Income from House Property in your hands.

mudit garg

business

35 Points Posted on 12 March 2013

dear sir,

case history:

MIDC allotted plot to M/s. ,ABC life sciences 2009.
Medi path sold the property to – M/s. Raj industries. M/s. Devi industries has paid 100% payment to them.
Registered power attorney was issued in the name of one partner of M/s. Devi industries.
M/s. Devi industries made an agreement to sale of a portion of property to us on a notarized stamp paper. M/s. ABC life sciences is a consenter to this agreement (signed by their attorney on their behalf)
We have paid 38% payment till date.
Final supplemental lease agreement shall be made between us , M/s. ABC Life sciences (through the POA holder) & MIDC

MIDC value of property is Rs. 520 per sq. Mtr and ready reckoner rate is Rs. 6000 per sq. Mt.

Kindly advice on how to avoid IT liability