What is my tax liability?

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I 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?

Replies (5)

" 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!!

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?

if you want to save your tax then should have long term capital asset, and for this purpose your asset should be atleast three years old.

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?

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.

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