Purchase of site in bangalore - full value registration
Vishal
(Querist) 12 December 2011
This query is : Resolved
Dear All,
Iam planning to buy a residential site for 30 lacs through a bank loan. Bank is funding about 27 lacs by single DD in favour of the seller.Now the seller says that full amount by DD will attract Long Term Capital Gains which he is not ready to pay.
Kindly let me know the ways to avoid the taxation on the same for the seller as Iam very much interested to purchase the same.
PLEASE HELP ME ON THIS.
Regards,
KS Vishal
Anirudh
(Expert) 12 December 2011
Is he showing Rs. 27 lakhs as sale consideration in the Sale Deed or not. If he shows the said sum as consideration, whether he receives by one cheque/DD or by several cheques/DDs it will not make any difference as far as the capital gains is concerned.
Vishal
(Querist) 12 December 2011
Thanks Mr Anirudh for your reply.
Of course the seller will have to show the said sum as consideration since my banker will give a DD for the whole amount.
My question is what are the ways to avoid capital gains for the owner as he is not willing to sell the site if the amount of tax is going to be huge.
Pls reply.
sanjeev murthy desai
(Expert) 12 December 2011
dear mr. Vishal,
Tax is vendor duty he has to pay as mandatory and why you supporting him to escape his liability. if you supporting him subsequently you may bother in future.
Sailesh Kumar Shah
(Expert) 12 December 2011
Mr.vishal
ask him to purchase another property from this amount to save tax or consult tax adviser for tax planning.
ajay sethi
(Expert) 12 December 2011
it appears that seller does not want Rs 27 lakhs by demand draft . he wants money by cash so that he does not have to pay taxes.
since you as purchaser are taking bank loan it is in your interest that maximum amount be paid by cheque /DD .
the seller can avoid tax only if he purchases another property within stipulated period or he invests in bonds .
if seller refuses tp agree to said sale you can purchase anohter property as there are hardly any buyers now for property
V R SHROFF
(Expert) 13 December 2011
Let him find out a buyer who is ready to pay cash.
You cannot help both,
Either you pay less by cheque, scarify Bank Loan, or scarify the deal.
You cannot do both.
As suggested , both of you go to Tax Experts.
