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I am buying a bda site in Bangalore. Seller has given me all documents and tax paid receipt for 2014-2015. Seller has not paid the tax for [deleted]? Should I go ahead and buy the property. The broker said it will take some time as this is year end as bda is not collecting taxes as of now. They will collect from next week. Is it okay if seller has not paid property tax? Can a seller sell such property? Are their any penalties
Asked 8 years ago in Property Law
Religion: Hindu

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11 Answers

get the documents provided by the seller duly verified by a property consultant even if it is BDA allotted site. Once your advocate gives you the opinion then proceed to believe what the brother tells otherwise it is his word only.

taxes for the year 2015-16 should have been paid in December 2015, if it is not then penalty will be collected if the payment is being paid now.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

The answer is no. If you purchase it now then the liability to pay arrears of tax will shift to you. So tell him to first pay the arrears.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1)don't buy if property taxes have it been paid till date for period [deleted]

2) contact local lawyer and check if title is clear and marketable

3) then only purchase the property

Ajay Sethi
Advocate, Mumbai
94719 Answers
7531 Consultations

5.0 on 5.0

It is the duty of the seller to pay all arrears with regard to tax- property, building etc. If you buy the land then the burden is shifted up on you to pay the earlier tax when you paid the tax in the year 2016-17.

Better suggestion ask the seller to the property is free from all encumbrances and taxes .Also meet a local lawyer and check if title is clear and marketable and the person who sell has absolute ownership over the property.

Ajay N S
Advocate, Ernakulam
4073 Answers
111 Consultations

5.0 on 5.0

1) let seller first make payment of property tax then only purchase property

Ajay Sethi
Advocate, Mumbai
94719 Answers
7531 Consultations

5.0 on 5.0

Hi

You can go ahead and buy the property with a caveat to the buyer that all property taxes as of 31-March-2016 or as of date of registration (which ever is later) should be settled before registration.

BDA issues tax notices only by end of April for the financial year commencing from 01 April 2016.

Hope this helps.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

It is possible. The choice is yours.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

The receipt is issued even if you pay it belatedly.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

I am buying a bda site in Bangalore. Seller has given me all documents and tax paid receipt for 2014-2015. Seller has not paid the tax for [deleted]? Should I go ahead and buy the property. The broker said it will take some time as this is year end as bda is not collecting taxes as of now. They will collect from next week. Is it okay if seller has not paid property tax? Can a seller sell such property? Are their any penalties

If you have planned to buy the property, have you verified all the link title documents, up to date EC, khatha, have you obtained legal opinion from a knowledgeable advocate about the marketable title to the vendor and any other encumbrance. You should not decide about buying just seeing the documents produced before you, a lawyer will be knowing the defects in the document while scrutinising the same. Therefore mere tax receipts will not confer title to the properties. Tax receipts can be obtained on anyone's name by bribing the revenue department staff.

The BDA will ot say that they will not collect the tax when offered to pay them across the counter. In fact they accept even advance tax, so dont go by the words of brokers or the vendors in this regard, why should he not pay the tax when he is due for it. Actually the tax for 2015-16 should have been paid by now, there is something fishy in the subject, better be careful about it and dont take any decision in haste.

T Kalaiselvan
Advocate, Vellore
84919 Answers
2195 Consultations

5.0 on 5.0

The broker said it will take some time. They will directly pay for 2016-2017 along with arrears. Is that possible? But they won't get the receipt since the calendar year is over.

The broker is unreasonable in his statement. The BDA is government authority. They cannot refuse to accept the taxes which have already become due especially when it is offered to them across the counter.

The brokers will tell lot of lies to sell the property just aiming at their commission. They will not bother bout the after sales problems and they will simply express their inability or helplessness when you approach them to solve your problem, if any that may arise out of some mistake or fraudulent transaction.

T Kalaiselvan
Advocate, Vellore
84919 Answers
2195 Consultations

5.0 on 5.0

you should avoid to purchase it without getting all the paper duly prepared. December 2015 is the due date for payment of tax for 2015-16 , however builder can pay it after due date with fine so you should wait for sometime.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

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