Pay the lease money. As such there 8s no way to hide price and tax. Father should purchase another property of like amount to save property taxes. Donot deal in cash. Only negligible money you can save. Now your every information is on line and on radar being linked with aadhar.
Safety and tax on selling 35 years old plot
Hi all, My father bought a land in rajasthan for 25000 rupees in 1987 in jaipur, rajasthan. This is jda registered property which he got in a jda lottery. Current market price is nearly 3 cr rupees. nobody lives in that plot and it is empty with only a gate. 99 years lease is not yet paid. Does it help to pay 99 years lease cost to govt?(help in case somebody encroaches on the land) irrespective of if we sell it or not. now if we want to sell it then how can we save tax on it? few things i have noted - 1) my father will have to buy another residential property in his name or invest in govt bond. but he already lives in owned bungalow. also capital gain will be applicable for index after year 2000. 2) how can we reduce cash paid by buyer. as now a days govt has strict guidelines and scrutiny of cash. so in essense we want to keep propert safe and reduce tax outgo in case we want to sell it in future. ideally we want to sell it and buy a commercial propert in jaipur or mumbai, which can then give us some good cashflow on monthly basis. Thank you.
Asked 2 years ago in Property Law
Religion: Hindu
7 Answers
As on date your father is absolute owner of land as he bought land by registered sale deed
2) your father is at liberty to sell the land
3) insist on all payment by cheque or NEFT/RTGS
4) if you don’t want any encroachment on land post security guards on land and also install CCTV cameras
5) don’t accept any payment in cash
In order to hold the clear and marketable title to the property you have to pay the pending dues which will include the lease amount, transfer of mutation records etc.
After having the proper title to his name i.e., besides the registered sale deed, along with the receipt for payment of 99 years lease, you can sell the property in favor of the prospective buyer.
you can collect the amount you have paid towards the 99 years lease period also from the buyer.
Always make it a point to obtain the amount by bank transfer or DD or cheque or NEFT transfers to avoid income tax legal complications.
Yes the above ways stated is proper to save capital gain tax
Dear Client,
To obtain a clear and marketable title to the property, it is essential to settle any pending dues, which may include the lease amount and the transfer of mutation records, among other things.
Once the proper title is secured in your name, along with the registered sale deed and a receipt confirming payment for the 99-year lease, you become eligible to sell the property to a potential buyer.
You can also recover the amount you paid for the 99-year lease from the buyer. It is advisable to opt for secure payment methods like bank transfers, demand drafts, cheques, or NEFT transfers to avoid any complications related to income tax regulations.
To avoid long term capital gain tax, have to Purchase the house within 1 year before the date of land sale or within 2 years after the sale. Do not sell the house within 3 years of purchase or construction. Having one residential property is fine. Can buy another one.
2. This is decide by seller and purchaser.
If you have not applied for JDA patta. Apply as soon as to keep property secure from encroachment.
- Since, the said plot is on lease , then legally your father cannot sell the same without getting free hold from the JDA
- Hence, he should apply for getting freehold of the plot and transfer the same in his name to become absolute owner of the property.
- Further, you can construct some temporary shed in a small area of that plot for showing your permanent possession in the plot , or you can fix a sign board there after writing that this plot is under your ownership , and if entering this plot will be treated as trespasser criminally
- Further, if the property is sold after a holding period of more than three years, it is to be treated as a long-term capital asset and a gain arising from its sale is assessed as long-term capital gains
- Further, as per Section 54EC of the IT Act, any capital gains arising from the transfer of a long-term capital asset/ property, would be exempt if the gains are invested within a period of six months in specified investments, and these investments are three-year bonds of National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC). However, there is a restriction in this investment: the amount invested cannot exceed Rs 50 lakh in any financial year.
