Anonymous
02 January 2021 at 13:36
Sale of Vacant Land for funding the construction of apartments and Allotment of flat by beneficiary
Opinion sought regarding Capital Gain Tax and types of documents to be executed w.r.t. Income Tax, RERA & GST Act.
Facts / Background:
N purchased the property consisting of land and residential house in South Chennai measuring about 2600 sft in 1974 and 50 % share of the property was settled in favour of his wife L in 2015. N expired in 2019 leaving behind his wife L (77) and two sons K & P as legal heirs.
As the building is very old, L, K & P want to demolish the building and construct an apartment building with 3-4 flats. But they are not in a position to construct with own funds and are also not interested in a Joint Venture scheme of any builder due to variety of reasons.
R (73) – Brother of N has a vacant plot in West Chennai purchased in 1975. L and her two sons have approached R for funding the construction of the flats in their land with an offer to allot one flat with uds of land in return proportionate to the amount to be invested by R for the development & construction of flats.
It is assumed that - Since R will be utilizing the sale proceeds of the vacant land against the value of the flat to be allotted to him, there will be no capital gain tax for him. Similarly, since L and sons will be utilizing the sale proceeds of uds of land to R, by constructing flats for them, they also will be exempted from capital gain tax.
Now, with regard to execution of documents to complete the transactions one option is - L and sons have to execute a sale deed for the sale of uds of land to R and subsequently all the four have to enter into construction agreement with the builder for development & construction of flats to them.
Supposing if L and sons request for the money (sale value of R’s land)) to be paid directly to them in advance without involving the builder on the understanding that they will transfer one flat with uds for the value of investment after completion of the flats - will it be risky or alright to concede to the request.
What will be the implications of capital gain tax and the consequences if the flat is not completed by the builder as per the requirements?
Any other alternate and viable documentation to take care of Capital Gain Tax, Stamp Duty and other statutory requirement.
Anonymous
31 December 2020 at 20:22
My mother set the nominee for her bank account as my cousin. (her sisters son). she was misguided into doing so, he was present with her when opening the account.
Now mother has expired and bank says money will be given to nominee and the nominee has no intentions of passing over the money to us - Legal heirs.
I know Succession certificate can be procured and matter sorted out, but we all know it is a costly and more importantly takes 5-7 months
I have found RBI circulars where it clearly states Bank should not insist on Succession certificate if the all legal heirs are available.
Bank is harping on the same tune - We can only give to nominee or get Succession certificate. We have Legal heir certificate issued by Tehsil office and Death certificate
My question is - How to bypass nominee and get money without going through trouble of getting Succession certificate
Release of Assets of Deceased Customers to Legal Survivors/Claimants
DBOD. BC.No. 55 /09.07.007/2001-02
https://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=545
Additional points for the above circular
DBOD.BC.No. 63 /09.07.007/2001-02
https://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=569
Anonymous
31 December 2020 at 10:11
My community certificate is by but my college tc in October how to correct my tc
Anonymous
30 December 2020 at 21:36
My name is AB
but in all my academic documents, and adhar card it is written as A B {with space}
but in my passport, it is written as AB
How can I rectify it and how much time will it take?
What is the procedure?
thanks.
Shilpa
29 December 2020 at 23:39
1 stilt + grounf+2,will there be 4th floor for this plan and weather i can purchase 4th floor flat??
Shilpa Shetgar
29 December 2020 at 23:31
1 stilt + grounf+2,will there be 4th floor for this plan and weather i can purchase 4th floor flat??
Harish
27 December 2020 at 21:27
My employer requested a Rent Agreement as a compulsory condition to get HRA benefit, where the rent agreement should clearly specify the duration of the period exemption is claimed i.e from 1st April 2020 onwards .
Now my query is - During the period starting from nationwide lock down from 24th March 2020 till Unlock 1.0 started from June 1,2020 - most of the sub registrar office and notary services were suspended so legal rent agreement work was NOT done in most of the courts/sub registrar office.
Want to know if there is any verdict from any court or any other law which provides exemption that if a rent agreement created on a later date can cover the entire HRA claimed period starting 1st April. What and how I should do to satisfy my employer condition of rent agreement with start date of specified period
Awni Ranjan
26 December 2020 at 20:17
Is it legal for a resident Indian to purchase foreign lotteries , e.g. American Lotto
Anonymous
19 December 2020 at 14:06
Dear Sir,
On the advise of RBI the IBA has prepared and suggested draft if working capital consortium agreement for consortium lending. While suggesting this they have not noticed that for the loans which are based on equitable mortgage banks execute deposit of title deed ( article 6 ) and unattested hypothecation ( exempted thru notification since English time ). In the IBA suggested document i.e Working capital consortium agreement contains loan details as well as security details. Because of this it may fall under article 37(b) / mortgage deed. Article 37(b) or mortgage deed without possession attracts at least 10 times higher stamp duty then article 6 meant for deposit of title deed. This query is presently related to Rajasthan but may affect other states in future. Pl help us and suggest how to deal this situation.
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