5 members of my class mates planned to purchase 10 plots through bank auction ( bank is auction as single sale for 10 plots). all my firends are out side the country. so we decided that I will particpate in auction as self and not as group. upon confirmation from the bank to me, I will first register in my name and latter I will register plots to my 5 friends accordinlgy as an when they come to India
Three doubts I have on this and please clarify the same :
1) in this kind of situvation what I opted is right method, is there any better option?
2) as my friends are transfering amount to my saving account and I am inturn bidding the auction and doing the online payments to banker through my saving account. As I am doing transaction through my saving account do I fall in to any income tax constrains?
3) as banker is selling the property at Rs 500 per sqyd and the government rate is Rs 1000 per sqyd and registration cost is 6% of the government rate or purchase rate which ever is higher. I will get it regisitered from banker to me at rate rs 500 per sqyd but eventually I have to pay 6% of the government rate i.e, on Rs 1000 per sqyd, but when I register to my firends I am planning to mention that they have purchased from me at rate of Rs 1000/- per sqyd as we are ending up in paying registratrion fee to that extent in any case, but for every plot of 200 sqyd, the banker is registering at rate 1 lakh and I am registering to my friends at 2 lakhs and in this case I am not getting any money but do I fall in short term capital gain?
Please advise for all these