Seller asking for more money bcoz of incr. in Stamp Duty Value

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  1. Bilal Ahmed

    Bilal Ahmed New Member

    Hi team,

    Few years before in 2005, my father had purchased a property, which he did not registered onto his name due to shortage of funds, the property was under joint account (husband-wife), The husband has passed away and on his position, the wife is appointed as First division clerk in the same office. As she in working under state government, she wants us to clear the property tax before she signs the sale deed.

    The property was purchased for 10,50000.00. Now the value of the property is 27,00,000.00. As now i have arranged funds for registration, this lady is asking me to pay tax on 17,00,000.00 which is the difference amount between the actual transactions done in 2005.

    I am not sure, if she has been disclosing about this property in her annual IT return, with lots of hardship i have arranged funds for registration. But this lady is asking me to pay the property tax which is on Long term capital gain @ 20% of 17,00,000.00. (3,40,000.00). Is there any way i can exempt this tax ? I also asked her that after registration i would take loan from the bank and then would pay of any taxes that would come on to her, but she is not ready to co-operate..

    Please suggest any possible solution to exempt this tax, or any other solutions...
     
  2. rudrabose

    rudrabose Active Member

    If the circle rate has increased, then the seller would be required to pay Capital Gains Tax on the new increased rate.

    Maybe, she is asking for this amount.
     
  3. king999maker

    king999maker Active Member

    are u selling this property?
     
  4. Bilal Ahmed

    Bilal Ahmed New Member

    Yes.. the rate of the property has increased... But how is that going to effect her ?
     
  5. Bilal Ahmed

    Bilal Ahmed New Member

    Nope.. I have no plans for selling it..
     
  6. king999maker

    king999maker Active Member

    then that is not property tax it is capital gain tax u should pay that after receiving the amount there is also way to get exemption if u buy a house property with capital gain
     
  7. Bilal Ahmed

    Bilal Ahmed New Member

    I am neither getting any amount, nor the seller has got any amount.. the property was purchased 10 years before..and now the registration is going to happen... so what is the tax amount ? On what amount should the tax be paid ?
     
  8. rudrabose

    rudrabose Active Member

    The Stamp Duty Value would be regarded as the Sale Price and the Seller would be required to pay Capital Gains Tax on this amount.

    So if the Stamp Duty Value increases, she would be required to be tax @20% on the increased amount.
     
    Bilal Ahmed likes this.
  9. Bilal Ahmed

    Bilal Ahmed New Member

    Thank you @rudrabose
     
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