Ltcg on sale of a flat in chennai
Chandrika Subramaniyan
(Querist) 11 August 2011
This query is : Resolved
I am in the process of selling my flat for 60 L IN Chennai . Full Sale amount will be through DD.Buyer wants to proceed with the sale through POA to himself to register the flat in his 3 children’s names for a lower amount of 25 L. I would like to show the full 60 L amount to IT as LTCG…..and invest the calculated LTCG in to NHAI to avoid tax burden. As the title of the property will still be in my name at the time of registration, would IT not question me about the discrepancy in above transaction ? I would be grateful for your guidance so as not to default with the IT and let me know the legal procedure to follow in above case..
Thanking you
Sincerely
Chandrika
ajay sethi
(Expert) 11 August 2011
insist on cheque payment .
if you take 35lakhs in cash how will you account for the same . ?
in addition please find out the rate at which properties in your locality have been sold . if last transactions have been near 60 lkahs better to sell flat at that rate
Chandrika Subramaniyan
(Querist) 11 August 2011
Thank You Ajay Sethi. Please note full sale proceeds will be paid in Demand Draft / Bankers cheque. As such can you tell me if there is any legal way as not to default with IT on proceedure mentioned ? I will not consider black.....Chandrika
M/s. Y-not legal services
(Expert) 11 August 2011
Now no problem from your side.. The problem from buyer side only for register the sale with origock amount. Am i correct?
M/s. Y-not legal services
(Expert) 11 August 2011
If you want to be genuine mean just ask the buyer to register with original amount. Or else just cancel the earlier demand draft, just get demand draft for which amount to be registered then for remaining amount you can keep as unaccount money. I mean balance amount as ready cash.
R.Ramachandran
(Expert) 11 August 2011
You had earlier opened a thread on the subject at http://www.lawyersclubindia.com/experts/Advice-reg-sale-of-property-168661.asp
and got answers.
Instead of sticking to the said thread, you are opening fresh thread. Thus, the continuity is lost and you are also ignoring the views given earlier.
You are conveniently ignoring vital points.
(i) If you say that the entire sale consideration (Rs. 60 L) would be received by DD/Banker's cheque, naturally the same has to be shown in the Agreement to Sell as well and the Power of Attorney.
(ii) If the said amount is shown in the power of Attorney, how the power of attorney holder would be able to show any lesser amount of consideration subsequently? (iii) If he shows the lesser sale consideration, what would happen to the gap? (iv) how will you explain it away?
(v) In any case, if he wants the property to be registered in his three childrens name, you can do it straight away instead of through the Power of Attorney Route.
Please remember, straight line is a shortest route. Any short cut, will definitely prove to be a longer route.
Chandrika Subramaniyan
(Querist) 11 August 2011
Thank you Mr.Ranmachandran....I am sorry..didnt know how to get to my earlier thread. However.....the full sale money would be recieved on agreement for sale and POA would be given along with full indemnity protecting me from any liabilities 10 days later and POA will not contain any amount but just a POA for property registration purpose. I confirm that its buyer's need to register for lower amount to avoid higher tax. I see that this may pose a problem for me to be fully transparent to IT. As such I am exploring a legal way to proceed as above and to see whether I should or not agree to such practise. Thank you also to tom.advocate for reply.
R.Ramachandran
(Expert) 11 August 2011
For God's sake do not give any POA when you can execute a Sale Deed straight away by taking full consideration. Any other arrangement will not work. The POA holder cannot give you any indemnity against IT angle. If he is interested in purchasing your property surely he will agree, if not some other buyer will emerge. But you should not get into any such arrangements which would prove to be too costly to you in the long run.
Raj Kumar Makkad
(Expert) 11 August 2011
Receipt of Rs. 60 L by way of DD/bankers cheque and registration sale-deed against only Rs. 25L? This nothing but inviting a huge problem from IT department.
POA is presumed without consideration of money and receipt of Rs. 60L simulateously shall also contradict this arrangement.
Better get registered sale-deed directly in the names of minor sons of agreement holder/buyer and obtain DD only of that amount which is to be mentioned in deed and balance amount in cash may be taken.
prabhakar singh
(Expert) 14 August 2011
I do agree with Expert raj kumar makkad.
