Disclosure of income from sale of house property on gpa

since your colony is unauthorised any sale agreement cannot be registered . as on date you are registered owner of said property . govt tends to regularise unauthorised colony . wait for regularisation then sell your property . you will get a better deal .if you are receiving consideration by cheque declare the same .

Sir, I intend to sell this property and the amount quoted by buyer thru broker is acceptable at this juncture. Also I do not see further regularization of this colony bu Delhi govt.

As earlier mentioned, that the buyer is comfortable to buy under GPA/Agreement to sell/Will method. .

If buyer is ready then go for sale.

Sir, In that case, can i disclose the consideration as Income from Capital gain thru sale of house property for IT return.

Since the sale is not recognised, than can the income from that sale be recognised?

You may, and can, disclose the true facts.

If there is a transfer of property, even if illegal or not registered, you may disclose the transfer and the resultant capital gains.

After all you will have some document to evidence the transfer. You may retain a copy of that transfer document.

Sir, Thanks for your Inputs?

As per IT Act, we can save Capital gains tax if we invest the proceeds in Sec-54 bonds within 6 months of Sale deed.

(I intended to do the same)

In this case there is no Sale Deed.I fear that  GPA docs will not suffice for IT exemption.

Request to share your inputs on the same.

As per S.54EC, the time limit is within 6 months, not of registration, but of 'transfer'.

You can rely on the Explanation-2 to Section 2(47).

As per the extended meaning to 'Transfer' given there, the date of the transfer will be the date on which you hand over possession after taking the full price and executing some sale note /agreement (not necessarily registered).

Thanks Sir for providing clear answers to the query.

My Due regards.