• Deed of confirmation

I am getting Deed of Confirmation done by paying Stamp duty at current circle rate as the time limit for Registering the property had elapsed long ago. The seller is cooperating with me. I have some doubts that needs to be cleared.
1) Will I be able to sell my property after getting the Deed of Confirmation done?
2) The Housing Society I live in will apply for Deemed Conveyance in future. Will I be asked to pay Stamp duty again by the Office of the Registrar even after I will be paying Stamp duty at the time of Registration of the Deed of Confirmation?
3)Will I be able to replace the sellers name with my name in the land of records?
4) will the seller be liable for Income Tax? No financial transaction will be taking place at the time of Registration of Confirmation deed
Asked 4 years ago in Property Law
Religion: Hindu

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10 Answers

1. YES, PROVIDED the Stamp Duty & Registration Fees is paid.

2. Once Stamp Duty is paid THEN there is no need to pay Stamp Duty again for the same Land for which Stamp Duty was earlier paid (except re-sale). Society's Deemed Conveyance for the layout land, has got nothing with your private property. You are apprehensively pay for your Flat or independent Plot.

3. Your Flat /Plot will be properly Mutated in the TMC Assessment Dept., and you would get individual Assessment Tax Bill for your Property, in your OWN name without any reference to the Society.

4. Seller is liable for Income Tax, for the original sale, that too only once, provided he had declared the same in his income tax returns.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

You will be able to sell property after execution of deed of confirmation 

 

2) you won’t have to pay stamp duty again 

 

3) in land of records no change is required if it is flat in cooperative housing society 

 

4) no income tax is payable 

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

Reply to your queries are as below - 

1. once deed of confirmation is registered with the original agreement enclosed, your title becomes clear and thus you can sell

2.since you will be paying full stamp duty on the original agreement which will be registered with the deed of confirmation, there is no need to again pay any stamp duty as the time of society applying for deemed conveyance

 

also you must check and ascertain as to which of the following amounts are less -

deficit stamp duty paid on the original agreement plus penalty thereon

OR

full stamp duty paid on the agreement as per the present circle rate

generally it will be the first option since the transaction described in the original agreement is not a present transaction requiring you to pay full stamp duty as per circle rate as on present date. You have to pay deficit duty on the agreement plus penalty as prescribed in the stamp act.

 

3. yes absolutely

4.no. the registration of deed confirmation with original agreement is not coupled with payment of any consideration to the seller since he is already paid the sale price at time of execution of original agreement

Yusuf Rampurawala
Advocate, Mumbai
7512 Answers
79 Consultations

5.0 on 5.0

If the deed of confirmation is valid and property executed than no need to pay stamp duty again in the same

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

1. Yes you can sell the property after confirmation deed.

2. No 

3. Yes you can apply for mutation of property on your name after registration of confirmation deed. 

4. No seller will not be liable for Income tax.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

1. Deed of confirmation is not a registered sale deed or a title deed.

A confirmation deed means assent to the estate already created. By the confirmation, the parties further strengthen and give legal validity to the estate. A person may confirm and assent documents of conveyance executed by another person. ... Also, a copy of the principal deed should be annexed to the deed of confirmation.

It may so happen that a party to a document has made a mistake while signing the main document or has failed to admit the execution before the sub-registrar within the prescribed time. As such, a sub-registrar may refuse to register the document. Or else the parties may have executed the documents, but failed to register at a sub-registrar’s office to admit execution, and the registering authority may refuse to register the document. In order to remedy these defects, a deed of confirmation has to be executed by the party concerned, where he confirms the execution of principal deed and further adds that the principal deed is valid and binding on him. He also confirms that he has no right, interest, or title to the property transferred which belongs to the purchaser/transferee. Also, a copy of the principal deed should be annexed to the deed of confirmation. The copy should also be signed by the party executing the confirmation deed. This avoids execution of fresh documents, payment of stamp duty and registration charges.

2. There is no necessity to pay the stamp duty again if it has already been paid.

3. Yes, you can do that, you may go through the first answer above.

4. The seller will be liable for payment of income tax as per his income and also for LTCG or STCG as applicable.

 

T Kalaiselvan
Advocate, Vellore
84920 Answers
2195 Consultations

5.0 on 5.0

1. If as an effect of execution of deed of confirmation the title will pass to you then you as title holder will be able to sell the property.

2. Housing Society cannot seek stamp duty to be paid.

3. On the basis of deed of confirmation you should be able to mutate your name.

4. Seller cannot be liable for IT.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

once deed of confirmation executed you can sell .

no need to pat stamp duty . 

you can change in society record. 

seller not liable. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

1) Will I be able to sell my property after getting the Deed of Confirmation done?
Answer: Yes this becomes your important document and title deed;

2) The Housing Society I live in will apply for Deemed Conveyance in future. Will I be asked to pay Stamp duty again by the Office of the Registrar even after I will be paying Stamp duty at the time of Registration of the Deed of Confirmation?
Answer: No you will not be required to pay stamp duty again;

3)Will I be able to replace the sellers name with my name in the land of records?
Answer: Yes very much. Your mutation entry will be taken on record at the sub-registrar office;

4) will the seller be liable for Income Tax? No financial transaction will be taking place at the time of Registration of Confirmation deed
Answer: Since the transfer of property is happening on the registration of the deed of confirmation, the handover of the property is happening now. Therefore this date onwards the seller is accountable for the taxes, which his CA should be well aware of.

 

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Original sale deed will attach with confirmation deed. That earlier on the date of purchase, lpased to registered sale deed.

Deemed Conveyance is unnecessary, can refuse straight to make payment of stamp duty. 
Yes,
NO tax implication of present registration if seller have shown sale in the year of sale.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

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