Advice
M.A.T.Ganesan
(Querist) 18 January 2012
This query is : Resolved
My brother entered into a sale agreement with a person to sell his land inherited by him for Rs. 25,00,000 in the month of November. He sold the land the in January. But the consideration was stated Rs.1,00,000 which is the guideline value in Tamilnadu.The stamp duty was paid for Rs.1,00,000 and the saledeed was registered.
Whether he can use the unregd sale agreement?
whether the investment of the amount to purchase a land within 6 months of sale is exempted from income tax?
As per(Registration act,sale agreement need not be registered
Advice me to invest the amount
Raj Kumar Makkad
(Expert) 18 January 2012
You should mend your views now. Hon'ble Supreme Court of India has recently held that unregistered sale agreement has no value in they eyes of law and in case of any dispute, such unregistered sale agreement cannot come for the rescue of the person to the agreement.
If you feel that no dispute shall arise then keep on as desired but forget to take the shelter of law in case your presumption proves otherwise.
R.Ramachandran
(Expert) 19 January 2012
Dear Mr. Ganesan,
You appear to be totally confused or trying to confuse.
Forget about the Agreement to sell for a while.
You say that one has sold the property through Registered Sale Deed at a consideration which matches with the Guideline Value. In another thread, you had indicated that there is no mention whatsoever about the "Agreement to sell" in the Sale Deed.
Having done that the consideration so mentioned in the sale deed will be taken into consideration for all purposes - including the purpose of working out the Long Term Capital Gain Tax is any.
Now why you want to harp on the Agreement to Sale? Do you mean to say that the vendor took the consideration ageed (mentioned) in the Agreement to Sell, through Cheque, though the Sale Deed is registered only for a lesser value - as per guidance value?
Only in that case, there will be difference between the actual consideration received and that shown in the Sale Deed. In that case the only aggrieved party is the Stamp Collecor and not the Income Tax Department.
If the difference in consideration - i.e. the one shown in the Agreement to Sell and the one shown in Sale Deed - is received in cash, neither the I.T. Department, nor the Stamp Collector will come to know as per the existing records.
However, if anybody stumbles upon the unaccounted 'cash', then and then only you will be in deep trouble.
So, unless you come out with complete facts and your real concern, it is anybody's guess and the usefulness of the answers to your query would to that extent suffer.
Deepak Nair
(Expert) 19 January 2012
Sorry to say that i could not understand what you want to say.
Who sold the lproperty? your brother or any one else sold to your brother??
You say that sold through registered sale deed. Then what do you wnat to transfer through unregistered sale deed??
Are you going to purchase the land? from whom?
Kindly clarify your query for an appropriate solution.
M.A.T.Ganesan
(Querist) 20 January 2012
Dear Makkad, Please give me supreme court citation.
Thank you, Mr.Ramachandran & Mr.Nair.
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sale agreement was for Rs.25registered citing the value Rs.25,00,000.
sale was for Rs.1,00,000.
can the amount be invested to purchase land to capital tax?
