Trupti K. Gangar (Student) (135 Points)
26 December 2016Dear Sir/Madam,
I need a guidance regarding following situation from taxation point of view as well as law.
Buyer purchased flat from his wife's Aunty(Kaki). in 2002.Payment done in cash.
We want to get done with purchase deed.
And stamp duty payment if applicable..
Plz explain & guide us from taxation & law point of view.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178001 Points)
Replied 26 December 2016
Difficult to prove conpletion of transaction in 2002, without sale deed or agreement to sale.
Reasons: 1. If completed, whether capital gains were assessed in aunti's file of AY 2003-04?
2. If pending. whether the amount paid by cash are carried over in the balance sheets of both, purchaser and seller?
In your case when other simple way of transfer are available like GIFT, why to go for sell transaction only?
Trupti K. Gangar
(Student)
(135 Points)
Replied 27 December 2016
Thanks lot Sir for your response.
Ya.Gift is better option but Stamp duty will b required to pay even if considered as gift since no blood relationship.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178001 Points)
Replied 27 December 2016
Any sales transaction of 2003/2005 would be difficult to prove without any registered deed. Moreover, as per IT act, kaki is relative to niece, here spouse of purchaser, so any gift to her from kaki will be tax exempted. Thus no Capital gains tax to kaki, nor any gift tax to niece. Well, as per stamp act the stamp duty over the gift deed would be same as sale deed i.e. 5%. (not at reduced rate of 2%, as stated earlier)
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178001 Points)
Replied 27 December 2016
As per recent notifications, any transactions not registered with su--registrar are treated as invalid.
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