Sale of plot afte 3.5 years by two owners

It is your mutual understanding otherwise there is no legal solution to your problem as there is no any written agreement between you and your uncle withou which no any action can be initiated against him.

He is willing to pay me back, but he thinks that he will have to pay taxes & he doesnt know how much he will pay until he files in March 2012. So he doesnt want to give me my money until then.

If he pays me, can't he show that he gave me back all the money  & he should not be responsible any taxes & I am the one responsible for paying taxes on the 26 laks- Since I paid for the purchasing of the Plot. The DD i paid from my account. He did not pay.

 

it also depends on what u have mentioned in property documents at the time of purchase and sale. Has he signed those documents as joint owner?

Yes he is shown as 50% owner & I am the other 50% owner.  I tried to help his stupid family & he deceived me.

Should i be talking to a lawyer who deals in property? Suggest any in Hadapsar, Pune?

if i have to sum-up: 1. Title documents say u hav purchased directly, but u paid entire consideration (which implies though he is owner, he hasnt re-imbursed his part to you) 2. When u sold, he kept his share of money with himself. Now u wish to claim entire sale amt since it was mutual understanding betwn him & u. Unfortunately, its not on papers. To my opinion, what u can claim legally is 50% of purchase cost, alongwith intt till date; cos ur mutual understanding is not documented. So its better to apply family pressures to get the money back. U can insist that only tax portion should be retained by him. If u go for legal action, 50% of sale amt - 50% of cost is his share in profit as per documents.

Thank you for your reply, He is willing to give me minus the tax. BUT his CA is telling him that He has to use market rate 42 laks & he has to pay taxes on half of that.  BUT we sold it only for 26 laks (half is 13 laks) -

We are confused on how to calculate the tax. Since property is sold after 3.5 years, it should be 20% on 13 laks (1/2 of his share)  - 3.25,000 (cost of the plot).

Logically, this is how it should be. BUT different Charter Accountant say differnet things, so Where is it written in black & white how much taxes should be paid.

 

Thank Yo

does this mean value of tht prop for stamp duty purpose is 42lacs? In such case, pl refer sec 50C of IT act.

I dont know that. I have to find out. I just know that it was a Society & 13 members who baught theland. & now a CA is saying that the Market value is 42 laks so I have to pay 1/2 (taxes on 21.5 laks - cost 3.25 laks) - that is a ridiculous theory.  BUT once I get the papers, I will post it.

what is value of property for the purpose of stamp valuation. if it was 26 laks or less then you have to pay tax on 26 laksh (in the respactive ratio i.e 50 %), if it was 42 laks then you have to pay tax on 42 laks.

Thank you for your reply. That is the lamest law I've heard of. The value may be Rs X, but if we sold it for Rs Y for urgent sale, we still have to pay tax on Rs X when in reality we did not even receive CASH in that amt.

I did some research on how to Calculate Capital Gains Taxes and I found on itaxindia.org Cost Inflation Index notified by the government.

What happend to calculating Taxes via CPI (Cost Inflation Index)

Index Purchase Price = Purchase Price * CPI on Year of Sale of Property/ CPI on Year of Purchase Price

Capital Gains = Sale Price - Indexed P Price

Taxes 20% of Capital Gain = Capital Gains