My grandmother had sold our ancestral house to a party in 2003. The sale document was handwritten and notarised, instead of registry. 18 years later, the legal heirs of the purchaser want to resale the property, but cannot because there is no registered sale deed. They have asked my father for his succession certificate copy for the sale deed which they want to do fresh. My question: Can this be backdated? or it has to be done as per today's valuation? And what will be the tax implication for my father if he consents to signing such an agreement given that the previous payment was received by his deceased mother 18 years ago?
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Sale deed would have to be executed duly stamped and registered
stamp duty has to be paid as per today circle rate
3) sale deed can mention full consideration was received by grand mother 18 years back
4) as far as tax implications are concerned better consult a local CA
It can be registered back dated by paying penalty for the same. He will have no tax implications if he doesn't receive any consideration now.
A property cannot be sold without registration and payment of stamp duty.what wa sdone is illegal and therefore the previous transaction is null and void.
If you want to sell the property you have to do it through a registered sale deed/agreement and payment of stamp duty.
Since the property was not sold by a registered sale deed, the buyer is not having a title to the property.
Therefore a fresh sale deed has to be executed and the applicable stamp duty is to be paid by the purchaser at the rate that is applicable on the date of execution of this registered sale deed ion his favor.
The seller will have to pay the long term capital gains tax irrespective of the fact that the sale consideration amount was received by his mother long ago.
- As per Supreme Court , except a registered Sale deed , no other property document is valid for transferring the property in the name of buyer.
- Further, the said hand written and notarized document cannot be considered as a title deed of the property.
- Hence, legally said property is till date in the name of your grandmother and not the purchaser.
- Further, after the death of your grandmother , her property would be devolved upon her all the legal heirs equally , and hence the consent & approval by all is mandatory to make the said purchaser as owner of the property.
- Further, your father only cannot give any approval for the payment received by her.
- If your father is only surviving legal heirs then he can execute Sale deed in favour of the buyer after paying the current value of the property stamp papers.
