Sale-purchase of property

Tax queries 258 views 3 replies

saurabh

Salaried

39 Points Joined July 2011

I purchased a property and sold a previously held property to fund the purchase, in the same month, all for residential purpose. The days of difference between payment/registration of purchased property and receipt of sale proceeds from the sold property is 25 days respectively. Now, if I am paying a cash payment of 6 lakhs to seller, can I regard receipt of 6 lakh 25 days later from the buyer as source of income when in the sale deed of purchased property, it is written that seller recieved 6 lakhs in cash and rest from Bank (home loan)

Replies (3)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

cash payment of 6 lacs ? is it to be shown in deed of conveyence ? the seller may get in grips of department and will drag you too. better to make a bank draft and pay. ..

now the 2nd thing , your total consideration from sale of property is not used to buy new property but only so much amount is used what is shown in conveyence deed paid apart from bank loan, so balance would get taxed as LTCG or STCG as the case may be

saurabh

Salaried

39 Points Joined July 2011

Thanks Sharma ji. Yes, it is shown in deed. Now lets say, the grips can be justifed. On the 2nd part, agree and lets say I got 6 lacs after loan foreclosure etc. Can i say that source of funds for amount paid in cash in first part is second part (the second part is 25 days after the first part)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

you can pay upto one year from the date of purchase, from old property, but before filing official due date of the return of that period, (whichever comes earlier)., no bar thereon

The method is there for ease of calculation of capital gain tax from old property.