You won't be liable for income tax as you are paying amount not receiving any consideration.

The allottee and the builder shall be laible for income tax.

Also in sale deed the allottee shall also be made party and the rest of consideration of 15 lakh should be in his name as confirming party.

You shall be liable to pay TDS on Purchase of flat @ 1% under Section 194IA

if the sale consideration as mentioned in the sale deed is lower than the circle rate, the stamp duty would be calculated as per the value prescribed for circle rate

2)for the purpose of calculation of capital gains circle rate would be taken into consideration and not the price mentioned in sale deed

3)section 50C of the Income-tax Act, 1961 clearly mentions that the liability on capital gains would arise on the value of the property as fixed by the state valuation authority .

Thus, capital gains tax would be calculated on the value of the property as fixed by the Stamp Valuation Authority especially when such value is higher than the declared value of the property as appearing in the sale deed

4)under section 56(2) vii) in case of buyer the difference between sale price and circle rate would be determined to be the income of purchaser and taxed under head income from other sources

Taxed on the money consideration shown in the registration deed or at the time of registry.

Hello,

Your liability will be for the entire money that will be paid by you to the original allottee.

Regards

The builder will have to show the present market value as consideration in your sale agreement. It is recommended that the agreement value is not kept below the market value, otherwise the difference is taken as gift in the hands of both seller and purchaser, which invites tax implications. So ask your builder to put the present market value of the flat as sale consideration.

What tax liability are you referring to here.?

There is no GST payable for ready to move-in flats.

Currently, EMIs for ready-to-move-in apartments do not attract indirect tax. But installments paid to the builder for an under-construction property attracts a service tax of 15 percent on which abatement is provided. The premise here is that a builder is providing a service to a homebuyer by constructing an apartment. The abatement is allowed to take care of the value of the land involved in the construction of apartments,

Property for which completion certificate has been issued: No GST is applicable on ready-to-move-in or completed property as per the CGST Act, 2017.

Under Construction property when part consideration has been paid to the builder: The buyers are liable to pay 4.5% service tax applicable on the invoices raised or consideration paid before the July 1, 2017. However, payment made by the buyer to the builder on or after July 1, 2017 against invoices issued on or after July 1, 2017 shall attract GST at the rate of 12%.

Under construction property when entire consideration paid to the builder before GST rollout: There is no GST payable on such property even if the construction is completed after July 1 2017. This transaction will attract service tax at the rate of 4.5% because as for the point of taxation rules, 2011, the transaction attracts service tax and not GST.

1. What tax liability you are thinking about?

2. Since you have bought the said flat through allotment transfer, it is the transferer who shall have to pay the capital gain tax and not you.

3. When you shall sell the said property, your capital investment on the said flat will be considered as Rs. 35 lakhs for calculating your capital gain.

4. However, since the circle rate has been shown as Rs.50 lakhs, the I.Tax department will considered Rs. 15 lakhs (Rs.50 lakhs - Rs.35 lakhs) as your income on which they will claim Income tax from you.

5. In the above event, you shall have to challenge the said claim by filing an appeal before the appellate authority.