Selling of flat owned by father

sr_v@user (Querist) 25 August 2021 This query is : Resolved
Sir, As we are selling flat owned by my father, it was earlier agreed mutually that flat will be sold on lump sum amount of Rs.3875000/- & accordingly buyer paid 11 lakhs as initial payment and now he wants to show only market value Rs.3350700/- in sale agreement to save on stamp duty and registration charges. Now as per mutually agreed price, i have to take from BUYER RS 5 lakhs other than sale agreement price which will be paid by him through Demand draft and bank housing loan. Now please suggest if i being son of my father can accept Demand draft on my name for that amount? will it be legal? PLEASE HELP !

Follow Query

Report Abuse

Quick Summary

A son is seeking advice on selling his father's flat. The buyer wishes to declare a lower market value in the sale agreement to reduce stamp duty, with the remaining agreed amount to be paid separately via Demand Draft. The son wants to know if he can legally accept this Demand Draft in his name and how to handle the transaction and tax implications.

kavksatyanarayana (Expert) 25 August 2021
Yes. You can him the DD but you are liable to hand over the DD amount to your father.

Advocate Bhartesh goyal (Expert) 25 August 2021
You are not party to agreement so you should not accept D.D of Rs 500000/-in favour Of you beside this don't receive any excess money to sale consideration mentioned in sale agreement through D.D but receive it in cash so in future buyer can't claim it.

Dr J C Vashista (Expert) 26 August 2021
I agree with the opinion and advise of expert Mr. Bhartesh Goyal, you are not a party to the transaction and not entitled to receive any amount as consideration.

P. Venu (Expert) 26 August 2021
How come you are selling your father's flet? It appears that the query is wrongly worded.

sr_v@user (Querist) 26 August 2021
Thanks a lot for your valuable answers !

T. Kalaiselvan, Advocate (Expert) 28 August 2021
You can obtain the amount separately from the buyer, but how are you going account it in your income tax returns.
This amount has to be reflected in your ITR and you are liable to pay applicable income tax, but you have to mention the source of income and reasons accordingly.
Instead of taking a long route, you may ask the buyer to purchase the DD in your father's name itself, he may show it as income from other sources in his ITR.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries