04 February 2011
We had purchased one shop in 2005 and paid Rs. 1200000.00 as full consideration to the seller. I got possession of the shop and rented the same . Since then I am offering rental income for taxation.
But conveyance deed was not executed between us. Now seller want to make sale deed.
As per Stamp Act of Maharastra , the valuation of the said shop is RS. 4200000.00 and I had to pay stamp duty on Rs. 4200000.00. My question is as under :- 1)Seller is liable to pay capital gain tax on Rs. 1200000.00 or Rs.4200000.00 ?
2)For capital gain tax whether it is necessary to execute sale deed or handover of possession is sufficient ?
3) If sale is deed is necessary then what will be treatment of rental income shown in my return ?
CAclubindia
