Urgent - strange scenario

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24 Points Posted on 15 January 2012

Hi all,

I have a situation here.

I am selling my apartment to my cousin for 20L in bangalore. It is a 10 yer old apartment which was purchased during recession of 2001 at 2L (actually 10L, but builder wanted 8L in cash). The apartment is bare, ceramic floor, no balconies and no woodwork, no car parking (I made a big mistake back then not to purchase it..)

The problem is the govt rate is at 28L in that area whihc is 8L above my selling price! Now what to do? Is this not unfair for me to pay capital gain tax for full 28L when I have actually sold at 20?

Please let me know how best I can save from tax?

regards to all.

Maroon

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On 15 January 2012 at 12:26 Report
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senior excutive
100 Points Posted on 15 January 2012
Originally posted by : Maroon

Hi all,

I have a situation here.

I am selling my apartment to my cousin for 20L in bangalore. It is a 10 yer old apartment which was purchased during recession of 2001 at 2L (actually 10L, but builder wanted 8L in cash). The apartment is bare, ceramic floor, no balconies and no woodwork, no car parking (I made a big mistake back then not to purchase it..)

The problem is the govt rate is at 28L in that area whihc is 8L above my selling price! Now what to do? Is this not unfair for me to pay capital gain tax for full 28L when I have actually sold at 20?

Please let me know how best I can save from tax?

regards to all.

Maroon

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On 15 January 2012 at 15:49
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Gaining knowledge...
320 Points Posted on 15 January 2012

Hi,

I think you are misunderstanding some facts. I cannot believe that a place in Metropolitan City like Bangalore has its selling price below govt. rate. Infact, I dont think that there exist any such place at least with such huge difference.

But if it is really the case then you will have to pay Capital Gains computed by taking Sale price as at least 28 lakhs. So, no tax saving options there. But one thing you can do is to purchase another property as per various provisions of  Income Tax Act or Bonds of NHAI or RECI.

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On 15 January 2012 at 19:03

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