Hi,
I am selling my flat @ 90 lakhs but to save stamp duty & registration cost buyer wants to do the registration on ready recknor price (minimum price for registration) which is 61 lakhs. He is ready to pay the balance amount by way of cheque or trf. So I suggested him to add clause in agreement that if buyer do not complete the transaction on or before particular date (which he will not) he will pay me compensation of Rs 29 lakhs(90 -61)
My question is whether this 29 lakhs will be considered as sales consideration for calculating Long term Capital gain so that total sale price of of property will become 90 lakhs. If not & if this 29 lakhs will be considered in other source of income then I will end up with paying huge tax.
I am currently in 30 % bracket. My property cost after indexation is coming near about 91 lakhs ( cost as per agreement + stamp duty & Reg charges+ service tax & VAT + interest on borrwed capital which I have not claimed till date)
Please guide me on this. Looking for your expert advice
Regards
Abhijit Joshi
CAclubindia
