Hello There, I have taken possession of a flat in Bangalore in 2017 but the flat registration is not yet done. I have a home loan on this property. Can I sell the flat to another buyer without doing registration? If yes, can you please suggest if builder has to be engaged in this resale process? Will it be treated as short term or long term capital gain? I was staying abroad for last 6 years until last month. Currently as I am in India for next 6 months, will I be treated as NRI if the sale process is completed before I travel back and will it impact the taxation? Thanks, Amit
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Yes you can enter triparte agreement with owner you and buyer then there can be sale deed and you can be conforming party in same.
Short term.
See if you have resided for more then 180 days outside in india in financial year then only.you will be NRI also even you are NRI the amount will be taxable in India.
Registered sale deed ought to be executed in your name
2) then you can sell flat to third party
3) in alternative tripartite agreement ought to be executed between you purchaser and builder
3) it would be long term capital gain as held for more than 2 years
You can avoid the registration in this case. You can sell it only after registration
1. Yes, there is no impediment in selling the flat even before making the registered deed wherein you would jpin as assignor or nominator.
2. yes, the money you receive from the buyer would be considered as capital gain tax.
3. If you have a PAN card then you have liability to pay the tax.
Hi
Since you have taken possession of flat in the year 2017 without registration and also have a home loan , you are advised the following:
1) Obtain No Objection Certificate from the bank prior to sale. This is mandatory.
2) Please note you are not the legal owner of flat as of now as, In law, in absence of registration of sale deed between you and the builder, by virtue of transfer of property act, you do not have the title to sell the property.
3) So legally the options for executing a sale deed are :
a) Either the builder executes a registered sale deed in your favour and you can execute another registered sale deed in favour of buyer( this is costly as registration and stamp duty are incurred twice)
OR
b) Execute a tri-party sale deed where in the parties are : your builder (Seller), The buyer and you ( you will be the consenting witness to the sale deed).
4) Though you are not the legal owner, but given that you have taken possession and also availed a home loan, you are liable to pay capital gains tax under Income Tax Act.
5) Since you have taken possession, if the asset has been held by you for more than 24 months, then Long term capital gains at a rate of 20% (plus applicable surcharge and cess) is applicable. Please note that Capital gains are taxable in the year in which the property is transferred, irrespective of whether the sale consideration has been received in full or not. Please note that Buyer has to mandatorily deduct 20% TDS at the time of buying in order to ensure you comply with Capital gains.
6) Please note under tax laws to be considered as a Resident Indian
OR
So, if you satisfy any of the two above conditions, you are a resident indian.
If you do not satisfy both of the two above conditions, you are deemed Non Resident Indian.
Hope this above information is useful.
you can not sell the said flat without registration on your name. First of all you have no legal right over the said flat as per Transfer of Property Act, to sell the property. You have to done one thing that, you have to convince the builder at the time of registration of the said flat, it will registered in the new buyer, in between to execute the MOU between you and new buyer for the same.
1. Sale /Purchase of immovable property without duly paid stamp duty & registration is illegal & a prosecutable offence.
2. IF you have recorded the purchase of Flat in your income tax returns THEN you would be eligible for LTCG, in your Indian Income Tax Returns.
3. You can conduct the Registration even now by paying the fees & penalty and only then you can proceed to conduct further Sale Agreement, ELSE the Builder would be required to sign the future Sale Deed as "confirming & consenting party".
Have you got any POA from builder ? IF yes than builder involvement dose not require. Ownership not yet transferred in your name and if it is first sale via registered sale deed than no Tax implications only GST which you will submit on behalf of builder, can charge it separately.
AS title not transferred in your name, TDS will deduct acc. to Indian status of builder.
You may not be able to sell the house property to a third person during the pendency of home loan on it without clearing it or taking NOC from the lender bank and also since the property has not been registered on your name, you do not have title to sell this flat.
However you can make a tripartite agreement by which you may involve the builder and the bank in this transaction to sell the property.
There is no cap[ital gains in it, but you can show it as income from other sources.
You can make a triparty agreement with builder and buyer being parties and you will be conforming party.
Then builder can directly get the flat registered on name of new buyer.
Yes it will be considered for capital gain tax but you can evade tax if you invest the money to buy some other property.
