Sir, Request your advice on the following.
Original Owner who is agriculturist bought Agriculture Land in year 2000 for Rs.200000/- 2.5Acre in Mysore.
I/m not an agriculturist. But I bought the same land from him in year 2007 for Rs.35Lakh while exeucting "Agreement of Sale" which is unregistered. Entire sale consideration paid to land lord during year 2007 February and took possession of the said land and original documents.
Due to legal issues, I had to obtain govt permision to get the land registered in my name so Sale Deed could not be exeucted.
In the meantime, in year 2011, 3rd party involved inbetween myself and original land owner and created sham documents claimed land with suite for perpormance in the court and after 4 years of struggle, court dismissed the 3rd party suite. Now year 2015 the land remained with us without registration in my name.
A new buyer bought this land from my land-lord where Im the consenting witness and handed over possession and documents to him by receiving Rs.50/- Lakh. I received entire sale proceeds of this at my request land-lord came and executed sale deed in fabour of purchaser.
Now the question: who has to pay long-term tax?
Since original land-lord executed sale deed in favour of purchaser where I'm the consenting wittness to the deal, who has to declare sale consideration in their income-tax?
At what price?: If we look at the original land-lord, he bought land for Rs.2lakh and sold to me for Rs.35Lakh.?
Whereas, I bought land for 35Lakh and sold to purchaser for Rs.50Lakh after a gap of 8 years?
Please help to understand tax implications. Thanks much.
CAclubindia
