I am in the process of selling a 35 Year old Flat in Chennai Mylapore area.The sale is set to conclude at Rs 5200000 (all white)for a UDS of 595 Sq Ft & Flat size inclusive of common area at 825 Sq Ft which is part of 6 flats building. My questions are as follows and would be grateful for a guideline.
1.In the sale deed, the buyer wants to segregate land value,Building value so that he can reduce the registration fee for himself plus value for furnitures built in(part of the flat) all of which will make Rs 5200000 and I expect to collect one DD for this whole amount. Now, will I be breaking the law by signing above deed and showing partial as land and building value towards LTCG computations and the balance as cost towards the furniture.Would this balance be considered as black money ? I want to be transparent law compliant .
2. The lawyer I am dealing with does not give me a an indication for his fee structure. His role in this has been minimal like talking to the buyer ( Initial sale price and agreement has been directly by self and the buyer as buyer is the tenant who resides there) , giving copies of documents (Copies were taken by the buyer paying his own money from the lawyer)for buyer's loan approval, to write the sale deed and register the property etc. I would be grateful for a general and approximate guideline for a Lawyer's fee.
(Expert) 08 February 2011
Hi, I) the registration act applies to immovable property, the registry is necessary in case of land and buildings, so there is no harm in showing the amounts separately and regarding the balance amount other than shown as long term capital gain for income tax purpose, regarding furniture costs, if you dont show that amount for the purposes of income tax calculation for that period then it deems to be your black money.
2) the lawyer's fees is subject to the rules made by the high courts under the powers empowered on it by virtue of section 27 of Legal Practitioners Act, 1879. so check your high court rules and orders to know about the lawyer's fee