Pls Advice. Tax in Sale of Plot

593 views 3 replies

MManjula

Home Maker

68 Points Posted on 14 February 2012

Hi,

3 years ago I purchased plot for 13 lacs. I paid payments thru Cheque and have receipts & sale agreement for 13 lacs. But the Developer has registered the Plot for 2.5 lacs value though the sale agreement was for 13 lacs. I paid stamp duty & registration charges on 2.5 lacs registered value.

Now due to emergency situation I am selling the plot in loss for 11 lacs. The buyer also want to register the plot for 2.5 lacs and pay stamp duty & registration charges for 2.5 lacs. But he shall be giving cheque on my name for 11 lacs. There is no agreement except email communication as the Buyer is staying in abroad.

Kindly advice Tax implications like Capital Gains. What is the base of Capital Gains? Registration Document or Sale Agreement? Please Advice. What is the best way to take deal forward without any tax implications. Please Advice.

M.Manjula

Replies (3)

Anooj

Chartered Accountant

2130 Points Posted on 15 February 2012

My friend this is an illegal business if any officers see this, u r done. U better sell the property n show the correct valuation at the time of reg also.

MManjula

Home Maker

68 Points Posted on 15 February 2012

What is the base for Tax / Capital Gains? Registration Document or Sale Agreement? Please Reply.

Manjula

Guest

The base for calculation is the value disclosed by assessee. But dept. officer can verify the same with registered value i.e. stamp duty valuation & the stamp duty valuation can also be taken as sale value if the amount of stamp duty valuation is much more than value disclosed by assessee.