Can or will IT department serve Rs.3.6 lacs income tax demand notice on this builder?

Yes if he is not going to get the flat registered now there are chances that he can receive notice from income tax department.

Also there was a mistake in your last question this will not be LTCG this will be business income for builder and therefore income will be calculated differently.

By reading your questions title I also got carried away and didnt notice that he is a builder.

There is no surety as this is his business income and it all depends on what business income he shows and other details.

If the amount would have been above the limit set by government then there were more chances of him getting a notice but here there are less chances.

If you want any further discussion you can always call.

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Thank you.

Hi,

At the time of scrutiny, AO may ask for details and also serve a notice to the builder.

- Registry is still pending and the sale value is around Rs. 26 lacs which is less than Rs. 30 lacs for reporting under SFT by the sub-registrar to the ITD. 

Sir,

Please note that with the handover of possession flat is deemed sold and income tax liability arise at that time only, sale deed will not trigger any further taxable event.

So yes builder will get notice for tax since he has not booked any sales since last 30 years but that has nothing to do with the buyer of flat

No even GST shall not be applicable in the given case since under GST also mere a sale deed will not trigger and liability. 

No there is no GST liability either to the builder or to the buyer at the time of registration.

No

Yes, it can get a notice to the builder if he registers the property now.

No, there won't be any GST liability.

No payment was made in Pre GST period so no GST requirement

GST will be charged by the builder.

I don't see any income tax or GST liability to builder given that flat was actually sold in 1991 and it's just registration which is happening now.