We had some ancestral property. We had an agreement with the society (name not mentioned) to sell at a nominal rate in 1970's. Govt said we cannot sell as we have excess land. GO was passed after 20 years to sell the land(retainable) and society approached us to register us the lands in their names. They promised to give nominal amount slightly higher than what was agreed upon in 1970's. we agreed on moral grounds. Now the govt is asking us to pay the taxes on the govt rate.
Govt rate was around Rs. 6000 per sq yd and we sold it for Rs.65. Now govt is asking us to pay the tax amt of Rs 1 crore 20 lakhs as there was an amendment in the law done sometime in 2004 or 2005 where the law says that we need to pay the tax even if we sell the land for a lower rate than the govt specified rate or give the land as a gift. This is in Andhra Pradesh. Please advice on what needs to be done to come out of this situation.
