Dear sir I am planning to buy a commercial shop The transaction has been decided in rs 3 crores with buyer, and all the payments will be made by mode of cheques The circle value of the shop is rs 1 crore The property is owned by the buyer from 15 years back The question is on what amount I have to pay stamp duty And what will be income tax liabilities on buyer and as well the seller ?
You have to pay stamp duty on Rs 3 crores as mentioned in sale deed
2) if the circle rate of property is Rs 1 crore and you show consideration amount as one crore then stamp duty has to be paid on one crore
3) it is not in your interest to pay balance Rs 2 crores in cash to avoid payment of stamp duty
4) fir income tax liability consult a local CA
The stamp duty shall be paid on the purchase price (If you have to save stamp duty then the price in sale deed has to be shown less than that your actually paying as the usual practice. but since you are paying such higher amount i would advise you to not to just save stamp duty show less consideration amount in sell deed )
The buyer doesnot have any income tax liability on it because he not getting any income out of it on contrary on purchase you shall get deduction in your tax liability under section 24 read with section 22 income tax act as in income tax act there is no distinction between commercial and residential property both come under same head.
Further the seller has to pay taxes for the long term capital gains as he recives consideration from you.
You may have to pay the stamp duty on the sale consideration amount mentioned in the registered sale deed.
The income tax liability will be on the seller only and not on the buyer.
It depends on the LTCG computations and the exemptions he may claim under section 54 of IT act or any other relevant provision of income tax law.
The buyer has no Income Tax liability other than deduction of TDS amount payable to the Income Tax Department .
the seller has the capital gain tax payable on the amount received after adjusting the indexed cost. the buyer has to pay the stamp duty on the amount of sales value which is 3 crores and the amount played by check please remember to deduct tax@ 1% of the total procedure and deposit the amount in income tax department in the account of seller.
There is nothing wrong in purchasing the property over the circle rates and payment of stamp duty there on
