• How to ascertain tax involved in selling a slum hutment

I am in the process of selling a slum hutment held by my father, who passed away intestate. I have understood that a slum hutment does not have a registered sale document. We need to execute an affidavit transferring the Photo Pass (and other relevant licenses) in the name of the buyer.

Q1. Should this affidavit indicate any monetary transaction since it is not a sale agreement but only a transfer document? Is this a standard document which I can refer to?

Q2. Is there a ready-reckoner rate for slum hutment that needs to be followed? Will registration and stamp duty charges apply here?

Q3. What is the rule to ascertain the tax liability on this transaction since this is not a registered property sale?
Asked 1 year ago in Property Law
Religion: Muslim

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4 Answers

1. This is an unregistered instrument involving no legally enforceable conditions,  hence you can proceed with the proposed transfer in the manner that would be proper to the circumstances. 

2. Since you are not executing a registered sale deed,  no stamp duty shall be payable. 

3. This is considered as an unofficial transaction hence there can be no tax implication. 

T Kalaiselvan
Advocate, Vellore
84724 Answers
2172 Consultations

5.0 on 5.0

1. You need to execute a deed of assignment in the same. 

2. There is no sale deed so notary is enough. 

3. It will be income from house property if you show rhe same

Prashant Nayak
Advocate, Mumbai
31807 Answers
176 Consultations

4.1 on 5.0

It should mention consideration paid for transfer 

 

2) there is no standard document 

 

3) there is no ready reckoner for slum 

4) pay long term capital gains tax on sale of hutment 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

  • Yes
  • There is no ready reckoner rate for slum hutments hence there is no stamp duty and registration charges which needs to be paid. Make sure that the affidavit is duly notarized.
  • Since this is not a registered property sale, so you need to disclose it under the head Long term capital Gain/Loss.

Zafreen Khan
Advocate, Greater Mumbai
54 Answers

5.0 on 5.0

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