Incometax
M.A.T.Ganesan
(Querist) 16 January 2012
This query is : Resolved
A entered into an unregd sale agreement with B for Rs.5 00 000.to sell his land.But in the registered saledeed,the value of the land was stated as Rs. 7000/ only.ie,guidlines value. How can A invest to avoid income-tax?
1)Whether the sale agreement can be used in submitting income tax returns
2)Whether investing the amount to buy a land do not attract tax, if invested within 6 months of sale
3) Any other way to invest
4)Whether B is liable for stamp duty
Advice with relevant provisions of IT laws
R.Ramachandran
(Expert) 17 January 2012
Does the sale deed makes a mention about the existence of the prior "Agreement to sell"?
soumitra basu
(Expert) 17 January 2012
Mr. A has to invest not on the basis of sale deed but on the basis of value adapted by the registering authority for the purpose of stamp duty.
prabhakar singh
(Expert) 17 January 2012
And if agreement to sale is mentioned in the sale deed then?????????
M.A.T.Ganesan
(Querist) 18 January 2012
In the sale deed, the agreement has not been mentioned
R.Ramachandran
(Expert) 19 January 2012
If in the sale deed there is no reference to any prior "Agreement to sell", then if the sale consideration mentioned in the Sale Deed is in tune with the Government fixed value, and if the stamp duty has been paid on that basis that is the end of the matter. The seller has to account only for the proceeds received as per the said Sale Deed and also the Capital Gains Tax if any based on that consideration. Nothing more nothing less. The Agreement Sell - whether unregistered or registered will have no bearing.
