Sale value higher than registration value
ChandanLawyersclub
(Querist) 19 January 2015
This query is : Resolved
I am selling a property for which I had taken 30L loan, my 12 L white money to builder as cash 9 yrs back, now I am selling that house. registration value property is 90L, market value 105L. I want to take all money in as DD/ cheque only, no cash.
Can my seller register register property as 90L and transfer me 105L by deduction 1% TDS.
regards
Chandra
R.V.RAO
(Expert) 20 January 2015
registration of immovable property as per transfer of property act will be done at the sale rate documented in sale deed.
under sec 194IA, when sale price is more than rs fifity lacs ,tds is attracted.
if regd.sale deed price is rs 90 lacs, being documented, tds will be on 90 lacs.
if capital gains tax is attracted, the basis is price stated in regd.sale deed
Anirudh
(Expert) 20 January 2015
Dear Chandra,
What you paid to the selling party at the time of buying the party will be ascertained from the consideration shown in the Sale Deed (and not what you paid through cash etc. without showing the same in the agreement).
You have to very clearly state (i) what is the consideration shown in the Sale Deed when you purchased the property (ii) in which month and year you purchased it (iii) what do you mean by market value (Do you mean the guideline value?)
Only after knowing this, it will be possible to give an appropriate answer to your query.
Rajendra K Goyal
(Expert) 20 January 2015
The registration money would be the sale price.
For calculating the capital gains tax and other tax liability consult local tax consultant.
ChandanLawyersclub
(Querist) 20 January 2015
I Registered it 32L in Oct 2006+stamp duty But I have given Builder 44 Lakhs ( 32 Registration + Cash 12L). I will finally sell it as registered deed in May 2015. Capital gain
assuming cost of Inflation for Fy 15-16 5%.
Index of 2006-7 -519, 2014-15- 1076. 66 is base and LTCG is 38.4L(I am buying a new house with 38.0 L which I want to take section 54E benifit )
Actually I want to take all 105L as DD/ cheque.
Can I ask my buyer to register at 105 L. I checked with bank , bank said its possible to register at higher than guideline value.
Anirudh
(Expert) 20 January 2015
As already informed, any amount (i.e. 12L) which you paid through cash and does not form part of the total consideration as indicated in the Registered Sale Deed cannot form part of the cost of acquisition of the property by you.
Since, it is not clear as to what is the exact stamp duty paid by you I am taking the basic consideration of Rs. 32 lakhs for the purpose of working out the capital gain.
Cost Index for 2006-07 = 519
Cost Index for 2014-15 = 1024 (not 1076.66 as indicated by you)
Therefore, the indexed cost of acquisition is 3200000x1024/519 = 6313680/-
You can add the exact stamp duty + registration charges that you paid for registration to Rs. 32 lakhs and work out the exact capital gain figure (which will definitely be more than Rs. 6313680/- which has been worked out without taking the stamp duty)
Now if you sell the property for 1.05 crores, the difference will be the capital gain.
On this you will be able to save capital gains tax if you buy another property covering the entire amount of capital gain. (Pl. note that such a benefit would be available to you only if you do not have more than 2 houses including the one which you sell.)
So long as the consideration is more than the guidelines value, there should not be any problem in getting the same registered at the actual sale consideration. HOWEVER, IN THIS SITE ITSELF, SOME MONTHS BACK, SOMEBODY POSTED THAT THE SUB-REGISTRAR WAS REFUSING TO REGISTER AT HIGHER AMOUNT THAN GUIDELINE VALUE, AS OTHERS WOULD SUFFER! Therefore, please check up.
ChandanLawyersclub
(Querist) 20 January 2015
Thx got it
I have just a query regarding number of houses
1. I have this house in which was acquired as ready to move in 2006 Oct.
2. I had another house which I have booked in Nov 2012 in Delhi, which I will get in April 2017. Only 50% payment done to builder.
3. I have booked another house in Bangalore this month, which I will pay by APril and Register once sell the chennai.
Is under construction will be treated as number.
So one selling, other buying
Total remain as 2. Is my understanding is correct. Or I have three.
Anirudh
(Expert) 20 January 2015
You have two - the one which you have booked in Delhi and the one which you want to sell. The one that you have booked in Banglore may be treated as a new asset in lieu of the one that you are selling.
malipeddi jaggarao
(Expert) 20 January 2015
Pay the stamp duty for 105L and got it registered.
