Chinnappan (CEO) 21 July 2022

Property registration and the sellers responsibility

I intend to sell my apartment for Rs.2 crores and the buyer is offering cash of Rs.60 lacs and the balance in cheque and agrees to register the property for 1.4 crores. I will remit the cash of 60 lacs into my bank account and declare as sale proceeds and calculate capital gain on total sale value of 2 crores and pay Capital gain tax on the total sale value of Rs.2 crores after indexation. Am I complying with all legal formalities? The registration department has agreed to register the flat for Rs.1.40 crores as per the guideline value of Govt. As a seller Will I encounter any problem with Registration department. Can any one clarify this

Thanks

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1 Replies

Mahi Manchanda 27 July 2022

Hi,

The property has to be registered at the full amount of sale proceeds that is, 2 crores itself and not 1.4 crores. The capital gains tax that will be estimated after the registration will be according the complete amount, i.e., 2 crores.

I hope this helps.

Have a good day!