Hi all
A friend of mine booked a flat in Cossipore Kolkata – 2, under Kolkata Corporation, agreement date in June 2010 @ Rs.2500/sq.ft.
Initial amount was paid by cheque before the agreement sometime in May around Rs.100,000 token amt. Thereafter, instalments paid by cheque in 2011, 2012.
The builder now calls for the balance payment as the flat is completed and asks the flat to be registered @ 3900/sq ft. as the corporation have increased the circle rate saying Sec 43 C is applicable. He also says that the diff between agreement rate i.e. Rs.2500 & present Kolkata corporation rate will be taxable and treated as a deemed income even though the property is not being sold & have not received any actual income.
the builder also suggests that I.T allows one exemption for accepting rate of the flat as per agreement if any payment has been made other than cash before the agreement is signed, then we need not pay tax as per sec 56[2]
kindly advise
1. What is our liability? Shall we delay it? Instead of March 2014, will it make any difference if registration is done in March 2015? Any other option?
2. Builder also says that as circle rate has increased to Rs.3900, Kindly advise are we liable to pay the tax on the deemed income?
3. Will it make any difference if we delay the registration process i.e. we take the possession but do not register it now?
Kindly advise whether we can get benefit of this section or any formalities has to be done to get benefit
Thanks
