Hi
No, capital gain tax is payable by seller . Buyer need to pay only stamp duty.
Hope it helps
Capital gain tax on buyer
I am a Buyer. I have recently purchased a agriculture plot of 11000 sqft at village Limbodagiri (Pin - 452007) dist Indore. As per govt guideline the price of this plot is INR 35 lacs ( Stamp duty to the government is also planned to be paid as per Govt guideline i.e as per 35 lacs), however the Seller ( A Builder and Developer, A registered reality company) is selling this plot to me at INR 25 lacs. While I will clearly mention this in the registry ( Govt Cost -35 lacs, Actual dealing - 25 lacs). My question is, As a buyer, will I be imposed any Capital Gain on this deal, in the above format ?? Note - Kindly also clarify the authenticity of this online consultation.
Asked 6 years ago in Capital Gains Tax
Please suggest any other point to be added in the registry of the property for making deal safe for the buyer.
Asked 6 years ago
Respected Mam, I am a Buyer and have paid the online consultation charges for safe guarding my Interest and my ITR. I have nothing to do with the Seller. Please clarify that I being a Buyer, I will not be imposed with any Capital Gain? Kindly clarify ASAP.
Asked 6 years ago
Hi
capital gain tax is not imposed on buyer...
Hi
If the actual consideration is 25 lacs and there is no other hidden payment, you are nowhere at risk if you're paying stamp duty at the government value i.e. 35 lacs. This is perfectly fine.
Mention such actual consideration in the deed so executed.
Sir being a buyer also since as per the deed you are buying the plot at 25 lakh whereas the value is 35 lakh so this 10 lakh will be added to your income u/s 56 and therefore you will have to pay tax on same so either collect tax you have to pay from the seller or ask them to register the property at 35 lakh. Or at 5% less than 35 lakh to save the above tax.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Capital gain is imposed when the property is sold. When you sell this property in future, 25 lacs added by the stamp duty paid shall be considered as cost of acquisition.
Hi,
- Capital gain arises at the time of sale of the capital asset. In your case, as you are a buyer therefore no question of capital gain arises.
Thanks
Dear Sir,
Hope you are doing well !!
You are not liable to pay any taxes on the same.
Further, proper documentation should be put in place for purchase of the property. The sale document should be properly stamped and registered and the original title deeds should be taken by the purchaser from the seller.
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