Purchase of apartment
This query is : Resolved
16 December 2011
Dear Sir,
A land lord wanted to sale his apartment
which actual cost is 50 lacks but as per
land registration the value comes to 30 lacks as per Govt Rate. The land lord wanted to sale the apartment at 50 lacks. Can I pay balance amount of 20 lacks which is over Govt rate & the amount is allowed by Income Tax ?
Kindly give your suggestion.
A land lord wanted to sale his apartment
which actual cost is 50 lacks but as per
land registration the value comes to 30 lacks as per Govt Rate. The land lord wanted to sale the apartment at 50 lacks. Can I pay balance amount of 20 lacks which is over Govt rate & the amount is allowed by Income Tax ?
Kindly give your suggestion.
16 December 2011
The cost of acquisition is the actual price paid for acquiring the asset.
If you pay the whole amount in white money, then the registry will be made for Rs. 50 lakhs and accordingly the same will be your cost of acquisition.
If you pay Rs. 30 lakhs in white and Rs. 20 lakhs in black, then registry will be made for Rs. 30 lakhs and only Rs. 30 lakhs will be your cost of acquisition.
If you pay the whole amount in white money, then the registry will be made for Rs. 50 lakhs and accordingly the same will be your cost of acquisition.
If you pay Rs. 30 lakhs in white and Rs. 20 lakhs in black, then registry will be made for Rs. 30 lakhs and only Rs. 30 lakhs will be your cost of acquisition.
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16 December 2011
Dear Sir,
Is there any option to pay the balance 20 lacks in white & the amount 20 lacks included in cost of assets ?
Please suggest
Is there any option to pay the balance 20 lacks in white & the amount 20 lacks included in cost of assets ?
Please suggest
Guest
Guest
(Expert)
17 December 2011
17th December, 2011 - Further to what Siddhartha Bharadwaj has to say -
Dear Pradipta,
Fist comes the Agreement for Sale of the Property. You will need to negotiate and pay the final price to the landlord and you should make full cheque payment.
The liabilities that arise on the transaction is the landlord has to pay Capital Gains tax on the sale and you have to incur Stamp Duty for registration of the property in your name.
Since the rateable value of the property is Rs. 30 lakhs, you will have to incur the Stamp Duty and Registration Charges on this amount, irrespective of the value agreed and settled with the landlord.
FCA Prashant Chavan
Dear Pradipta,
Fist comes the Agreement for Sale of the Property. You will need to negotiate and pay the final price to the landlord and you should make full cheque payment.
The liabilities that arise on the transaction is the landlord has to pay Capital Gains tax on the sale and you have to incur Stamp Duty for registration of the property in your name.
Since the rateable value of the property is Rs. 30 lakhs, you will have to incur the Stamp Duty and Registration Charges on this amount, irrespective of the value agreed and settled with the landlord.
FCA Prashant Chavan
17 December 2011
Dear Pradipta,
I agree with Mr. Bhardwaj and whtever he stated is correct .
Whatever u pay the seller in white is considered as cost of acquisition and u have to pay stamp duty on amount u paid to him and tht vl be the regd value of the property.
I agree with Mr. Bhardwaj and whtever he stated is correct .
Whatever u pay the seller in white is considered as cost of acquisition and u have to pay stamp duty on amount u paid to him and tht vl be the regd value of the property.
Guest
Guest
(Expert)
17 December 2011
17th December, 2011
Dear Pradipta,
I am glad that your question does not distinguish between "white money" and "black money" which are myths created by few people and professionals to create unnecessary confusion.
And this goes out to Siddhartha Bharadwaj and CA Abhishek Rana - "White money" is accumulated wealth of an individual on which Income Tax has been regularly paid in India. "Black money" is unaccounted wealth by scrupulous elements on which no Income tax has been paid.
FCA Prashant Chavan
Mumbai - 9920299337
Dear Pradipta,
I am glad that your question does not distinguish between "white money" and "black money" which are myths created by few people and professionals to create unnecessary confusion.
And this goes out to Siddhartha Bharadwaj and CA Abhishek Rana - "White money" is accumulated wealth of an individual on which Income Tax has been regularly paid in India. "Black money" is unaccounted wealth by scrupulous elements on which no Income tax has been paid.
FCA Prashant Chavan
Mumbai - 9920299337
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