• Sale deed after twenty years

Dear Sir,
I had bought a flat in 1994 at a cost of 1.25 lakhs. In the same building where my father was staying. Being a defence officer, I was away and I had given my father a general power of attorney to execute purchase /sell property in my name. 
My father without consulting me sold the property to one of the neighbours in 2002 for 8.5 lakhs. The money was received by him in cash over three years presumably.
I have come to know about this transaction recently, when the buyer died and his kin (son) wanted to sell the flat, and found out the sale deed was not registered by both our fathers.
Though the transactions were done without my knowledge I want to honour it as the other family is close to us and now is needy too as they have lost their sole bread earner.
The kin (son) is only 20 years old and studying.

However, the issue is that I do not want to loose any money further in form of capital gains tax as the circle rate now in 2017 is around 30 lakhs. 
Is there away to handle it ?
Can I sell this flat to a third person ( to the person the kin wanted to sell ) and let the money go to his(kins) account directly. And not pay any tax? Will he then be liable to pay income tax?
Can I register the sale deed at the actual amount received by my father in 2004? and pay capital gain tax only on that amount?
Though one of my friend has laughed at the absurdity of idea as no proof exists of the transaction. And adviced me to just take over property and give the amount received, back as a loan taken. I would rather do the morally right thing.
Regards.
Asked 7 years ago in Taxation

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2 Answers

deed of confirmation can be executed by you

2) enclose copy of the sale deed to the deed of confirmation

3) it has to be duly stamped and registered

4)in the alternative execute a sale deed for flat and reinvest the capital gains received by you in purchase of another property

5) if you sell the property to thrid party consideration should be received by you and not the original purchaser

6) registration of sale deed has to be done only within period of 8 months with penalty and not after 13 years

7) deed of confirmation is ideal solution

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

Can I sell this flat to a third person ( to the person the kin wanted to sell ) and let the money go to his(kins) account directly. And not pay any tax? Will he then be liable to pay income tax?

You cannot disown the responsibility

You cannot divert the sale consideration amount to the third person if you are the vendor for escaping the payment of long terms capital gains tax.

Can I register the sale deed at the actual amount received by my father in 2004? and pay capital gain tax only on that amount?

The sale consideration amount cannot be variate with a very vast difference.

If the guidelines value is more than the sale consideration price then the stamp duty is to be paid for that value only.

Therefore the capital gains tax has to be paid to that extent only.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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