Hi I am selling an Independent house property at Hyderabad Nacharam area, purchased 12 years back, at cost of 36Lakhs agreement of sale value. the person is going through bank loan. the Govt market value evaluation of the property is coming around 16.5 Lakhs. so though I will be receiving 36Lakhs in my account, actual saledeed is happening of 16.5 (Govt Guidance value). My questions are 1- if I am declaring the 36 lakhs as income from sell of my house, will I be questioned by the tax department, why did I register lesser value? what are the implications to it, and is the buyer or seller are accountable for this violation? 2- I hear there is no need of capital gain till 30 lakhs, is it correct? 3- when I had purchased this property in 2007, I too had agreement of sale value 23 lakhs and actual sale deed was done of Govt guidance value of 7.5 lakhs. I had paid the 23lakhs to the then owner through bank homeloan and cheque payment. so when I calculate capital gain, can my base value be 23lakhs or 7.5 lakhs?
Since you are going to show 36 lakh then what is logic behind registering it at less value it is not beneficial for anyone.
There is no such limit for capital gain.
Since the purchase deed is of 7.5 lakh income tax will consider purchase cost as 7.5 lakh and not 23 lakh.
Either do the transaction at government value or register it at actual value.
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Thank you
Hi
Please note that all the properties should be registered at actual sales consideration only.
1. In that case, you won't be questioned. But if caught, the buyer shall be required to pay the additional stamp duty.
2. Nothing as such. Exemption from capital gains can be claimed by reinvestments into house properties or eligible bonds.
3. Your cost of acquisition shall be 7.5 lacs only on which indexation benefit shall be available.
Dear Sir,
Hope you are doing well !!
1. You will not have any problem, so long as you pay the income tax on the Rs. 36 lakhs you receive from him.
2. No, it is not correct. There is no such limit for capital gain.
3.Your base value will be Rs. 7.5 lakh for capital gain calculation purpose.
