Long Term Capital Gain on Sale of Plot

Sir, If the buyer wants to pay only guide line value for registration, as he does not want additional stamp duty charges and the remaining money he will give another DD to us which is not mentioned in the Registration, will this create a problem for us to show the IT/ or for the buyer? If we declare that its towards the sale proceeds of our plot and we are going to invest both the DD's to purchase an apartment, could we be exempted under 54F? We are dealing only white money and he wants to pay only guideline amount for registration, then what can be done in this case? Thank you,

asked Mar 19 '12 at 01:14 by Lata Nair 1122


Not showing full transaction amount in sale deed in not legal and may involve legal case for both seller and buyer, as its a revenue loss for government in terms for stamp duty.

Further, if you accept some part separately, It may create issues for you in case income tax department asks you to show source of income received in form of DD. At that time, if you say its part of property sale amount, there would be issues as sale deed would show a different amount.

As unaccounted amount is not a part of long term gains, it would not have any tax benefit u/s 54 on reinvestment.

Better would be to ask buyer to get registration done for full amount. Whatever is the extra amount you can divide between you by adjusting selling price so that nobody has problems in future. Just by paying 2-3% extra amount now, you are getting rid of hassles.

answered Mar 21 '12 at 22:58 by Pankaj Batra 5.2k320

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So the buyer has to register the whole amount. Thanks for the information.
(Mar 24 '12 at 02:11) Lata Nair
Yes, it would be better for both of you.
(Mar 24 '12 at 09:20) Pankaj Batra

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Asked: Mar 19 '12 at 01:14

Seen: 1,328 times

Last updated: Mar 24 '12 at 09:20