Post dated cheques and valuation
Roshan
(Querist) 03 January 2019
This query is : Resolved
My father wants to sell a property in Nashik, MH. The builder is offering a price that is 20% less than the ready reckoner rate. My question is will he have to pay Long term capital gains tax on the ready reckoner price or the consideration received.
The builder also insists on getting the registration and sale deed done and pay 50% of the consideration right away and the remaining 50% within 12 months time. In this case, what precautions should be taken to ensure he fulfils the payment. Should post dated cheques be issued, bank name be mentioned. Any other formalities to ensure a smooth transaction
Thanks in advance.
Dr J C Vashista
(Expert) 05 January 2019
1. What is the difference for calculation of tax, levy of stamp duty and other charges ?
2. Why did you father agree for 20% less than prevailing market rate ?
3. Capital gains shall be levied on consideration which can not be less than circle (prescribed) rate. However, a local CA would be appropriate / required to be consulted for capital gains etc.
4. What is the reason for acceptance of 50% amount and get title transferred ? Once title is transferred forget about balance consideration.
Consult a local prudent lawyer for better appreciation of multiple queries involved in your query, analyses and guidance.
Hemant Agarwal
(Expert) 20 February 2019
Expert "Dr. J C Vashista" has explained it very correctly. Agree with it.
Keep Smiling .... Hemant Agarwal
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