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Long term gains

varun mech (7 Points)

13 April 2019  

Sir i bought a piece of plot for 722300 eight years back and spent about 700000 for the building which is under constructed due to promoter problem.i recently sold the plot along with under constructed building for total sale consideration of 2800000.But the buyer registered it only as a plot by paying 1400000 as stamp duty.Balance 1400000 he gave it to me as cheque but not mentioned in registration.I used the entire proceeds to buy a new property.My problem is while filing it in ITR FORM2 under long term gains can i mention full sale proceeds as 2800000 which is more than registered value of 1400000 or i can only claim 1400000 as sale proceeds which is mentioned in document and balance as income from other sources and pay 30 percent tax on it.Unfortunately i  do not have written agreement with the buyer nor the buyer is forthcoming to make a agreement that balance amount is also a part of sale deed.The only proof is  three cheques he gave for 1400000 which i en cashed IN MY BANK  one week  before registration.Kindly guide how to proceed with filing??

 6 Replies

Giridhar S Karandikar (Team Lead) (7334 Points)
Replied 13 April 2019

ideally the whole value of 28lacs shud had been recorded in the registered document. any specific reason why buyer had recorded only half the price. you need to communicate with the buyer and get the documents registered with the whole amount.
you can write to the department regarding this issue and raise your concern

varun mech (7 Points)
Replied 14 April 2019

Sir it is a incomplete building where completion certificate has not been issued.Hence the buyer registered it as a plot.I tried to get in writing that the balance amount of 1400000 he gave as cheque was for building but he is not forthcoming to give in writing.Can i declare full amount of 2800000 which i got from  from sale proceeds voluntarily even though  the plot  is registered for 1400000??I have take loan of 724000 for this incomplete  building eight years back and closed it  due to problem with developer.Will this be accepted as proof or will i be penalized since i sold as plot to the buyer?Kindly help sir.

Neemisha Khatri (Accounts) (283 Points)
Replied 15 April 2019

What could be accounting of additional 14 lakhs issued by buyer? Try to adjust against that, so that in future both stand on same footing.

4 Like

CA. Kasi Reddy Nallappa Reddy (Chartered Accountant) (153 Points)
Replied 15 April 2019


Could you please clarify the following:

When did you start construction and when did you stop the construction?



CA. Kasi Reddy Nallappa Reddy (Chartered Accountant) (153 Points)
Replied 15 April 2019

You can read the following article you may get the information:


varun mech (7 Points)
Replied 16 April 2019

Sir we started construction on march 2011 and construction was stopped around july 2011 due to dispute with developer.Hence i closed the loan amount of 700000 which were given in two separate installments by cheque to the developer by the bank.I still have the loan closure noc from bank with me.Will this be accepted as proof for the balance amount  of 1400000 i got in cheque by the buyer or only registered value of plot will be considered as sale proceeds?

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