Sale of 20% share of agricultural land (undivided property)
Partha Chattopadhyay
(Querist) 22 May 2017
This query is : Resolved
4 heirs out of 5 sold out their respective shares (totalling 80%) of an agricultural land and got the conveyance deed registered. 80% of the total area sold had also been mutated in the name of the buyer. Can the 5th heir sell out his remaining share of 20% without any legal complications? Secondly, the consideration money to be received in demand draft is less than Rs 5 lakhs.Whether this money attracts any provisions of income tax?
Rajendra K Goyal
(Expert) 22 May 2017
You asked:
Can the 5th heir sell out his remaining share of 20% without any legal complications?
Reply:
Yes, he can proceed for partition of the property in case of need through registered partition deed by mutual agreement or can file partition case in court.
Rajendra K Goyal
(Expert) 22 May 2017
You asked:
Secondly, the consideration money to be received in demand draft is less than Rs 5 lakhs. Whether this money attracts any provisions of income tax?
Reply:
The amount is of sale proceed of agricultural land to be divided in 4 parts, broadly no tax would be applicable, but discuss with local tax consultant after showing all related documents to explore exact liability.
Guest
(Expert) 22 May 2017
Agree with Expert
Guest
(Expert) 22 May 2017
Well Advised by Expert
Partha Chattopadhyay
(Querist) 22 May 2017
Thanks Mr. Goyal for your views. But since 80% of the plot had already been sold out by the 4 heirs and got registered in the name of the buyer, I think the remaining 1/5th share (20%) can also be sold by the left out heir to the same buyer without going through partition process. Moreover, I checked up with IT Act that sale of agricultural land in rural area doesn't attract any tax. Is it right?
Partha Chattopadhyay
(Querist) 22 May 2017
Thanks Mr. Goyal for your views. But since 80% of the plot had already been sold out by the 4 heirs and got registered in the name of the buyer, I think the remaining 1/5th share (20%) can also be sold by the left out heir to the same buyer without going through partition process. Moreover, I checked up with IT Act that sale of agricultural land in rural area doesn't attract any tax. Is it right?
Rajendra K Goyal
(Expert) 23 May 2017
If the owner of 20% share does not agree to sell / sell to same purchaser, no one can force him for the same.
Rajendra K Goyal
(Expert) 23 May 2017
Income on sale amount is taxable.
You have not mentioned, where the property is situated?
whether the sale proceeds of property was considered as agricultural property exempted under IT Act.
When, how , by whom the property was acquired?
As the above information was missing, it was advised to contact local tax consultant.
Rajendra K Goyal
(Expert) 23 May 2017
Repeated at:
http://www.lawyersclubindia.com/experts/Sale-of-20-share-of-undivided-property-642096.asp
Guest
(Expert) 23 May 2017
Agree with Mr.RK Goyal
Guest
(Expert) 23 May 2017
Well advised by Mr.RK Goyal
Guest
(Expert) 23 May 2017
Consult Local Tax consultant
Guest
(Expert) 23 May 2017
Well Advised
Guest
(Expert) 23 May 2017
Repeated Query Please
Dr J C Vashista
(Expert) 23 May 2017
It is absurd, ridiculous and stupidity to repeat same story.
If you are not satisfied with FREE advise from the experts you should opt for engaging a professional local lawyer.
Partha Chattopadhyay
(Querist) 24 May 2017
Thanks everybody.
I am totally satisfied with the advice (not "advise"), Dr JCVashista.Being new to this site I might have pressed the "submit" key more than once inadvertantly. My apology for unintended discourtesy. There was no room for any absurdity and/or stupidity. On the contrary, thank you again for trying to educate me. Hope this clarifies.
krishna mohan
(Expert) 24 May 2017
Sale proceeds if not invested for buying land may attract tax as income to the seller. Better to take the help of CA who can guide you correctly on tax matter.
Partha Chattopadhyay
(Querist) 26 May 2017
But it appears that sale of agricultural land in rural areas is exempted from income tax.
Guest
(Expert) 26 May 2017
You could Post your Doubts to the "CA club" of this Same Forum Please
