2 Replies to “What would be the liability if the property is sold to third party without any consideration.?”

  1. From 01/10/2009 a provision has been added to income tax rule that if is proved that someone has received an immovable property for an amount lesser than the circle rate than the difference between the circle rate value and value mentioned in sale deed will be added to the purchaser’s income.In your question you are to clarify whether any amount has been mentioned in sale deed or not.If the amount has been mentioned than there is a rather complex way of deciding your tax liability whether it is a short term liability or long term.Whether you have shown it as gift or you want to show it as having been sold to some beloved one as a zero price sale.Whether it is an agriculture land or a urban area land.Please be more specific with your enquiry.

  2. All calculations are based on the fair market value of the property. The authorities have a ready reckoner for market value.

    e.g. Stamp Duty will be applicable on market value of the property.
    Registration Fee will be applicable on market value of the property.
    Capital Gains = fair market value of the property – purchase price(indexed)


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