• Sale deed executed between husband and wife for no consideration.


     I had taken a property in 1995 and had only GPA and sale agreement, I registered the same in the form of Absolute Sale deed to my Wife in year March 2014 at zero cost. No cash transaction either mentioned in deed or done.

Since the lawyer suggested Sale deed, I had paid full registration and stamp duty charges. 

Now Income tax has issued a notice that I have to pay tax under section 50 C. If I have not received any income at all the how can income tax be applicable? 

What should be the response given to Income tax department.
Please help.
Asked 1 year ago in Capital Gains Tax from Bangalore, Karnataka
Yes you need to explain the same to IT officer with proof and with advocate letter confirming the same. If the Officer understands it then no problem.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Dear Sir,

Let me tell you very frankly that you have made a blunder by transferring the property at zero cost to your wife.

Income tax department can demand tax from you on the fair market value of the property.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.com
Abhishek Dugar
CA, Mumbai
2936 Answers
123 Consultations

5.0 on 5.0

From AY 2017-18 If date of agreement and registration is not same then and stamp duty value as on date of agreement can be considered provided consideration or part thereof received by account payee cheque before such agreement.

In your case transaction entered before amendment you take advantage of following ruling.
CIT Vs S Venkat Reddy  (2013) (Hyd)
ITO Vs Modipan Ltd (2015) (Delhi)

Saket Jain
CA, Greater Mumbai
23 Answers

4.7 on 5.0

 Also as per my previous view in the sale deed if you have not mentioned any amount then you need to explain the IT Officer and try to convince him regarding the same. If he dont then let him pass the order and you can go in appeal against the said order.

It is always better to hire a Consultant/CA for this purpose in your area who knows the officer well to make settlement.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

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