nagarjuna (Practice) (137 Points)
20 May 2017I want to sell a land for around Rs.30lakhs which I purchased a year ago for Rs.5lakhs.
Buyers intention is to pay only through account payee cheques as he is taking a loan from bank.
What are tax implications?
Can I save any tax? If yes, what are possible ways.
Can I ask buyer to withdraw the whole amount and pay in cash to evade tax?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178001 Points)
Replied 21 May 2017
" What are tax implications?"
As it is, it will be short term capital gains, which will be added to your income and taxed as per slab rate.
"Can I save any tax? If yes, what are possible ways."
If by any means, the transfer of land takes place after TWO YEARS OF HOLDING PERIOD!!
nagarjuna
(Practice)
(137 Points)
Replied 21 May 2017
I already had received an advance payment towards the same of Rs.1lakh. So, if I postpone the sale deed later to 1 year, Is it fine and Can I go ahead to save my taxes?
Nisha Gupta
(31 Points)
Replied 21 May 2017
nagarjuna
(Practice)
(137 Points)
Replied 21 May 2017
Which date will be considered as Date of Transfer if I postpone the sale agreement(i.e., Sale deed)?
Date of Actual receipt or Date of sale deed?
PRABIR PAUL
(*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.)
(1443 Points)
Replied 22 May 2017
Agreement is not important.
Payment is not important.
Registration is not important.
Possession(Key) is important.
In this case date of possession will be treated as the date of transfer.
As per the Finance Act 2017 the holding period Should be more than 2years for LTCG.
CAclubindia
