Plot of Land Ballia,UP.
Purchase year-1990 in two instalments
Purchase price-Rs 42,000 (35000+7000)
Stamp Duty Valuation-Rs. 73,000(Rs.9000+Rs.64000)
Advance taken in 2019 -Rs. 15 lakh without any documentation in joint SBI Bank Account of father and mother, both sr citizen father being first holder. Father expired in 2020.
Sale to different person on August 11 2023 for Rs 20 lakh received in HDFC Bank joint account of mother and son,mother first holder . Rs. 15 lakh transferred through RTGS to the person who gave advance and Rs.3 lakh as interest claimed by him transferred through IMPS and Phone Pe to a different person whom the first person owed money, at the request of the creditor and debtor.
Stamp Duty Valuation of Land in August 2023- 39 lakh.
The total Yearly Income of the mother, sr citizen, is Rs. 12000 as pension (Rs. 1000 per month). She has not filed any previous ITR.
Tax implication and tax planning for both buyer and seller and response to following specific queries-
• In ITR, there are 3 rows. One is for sale consideration,2nd one is for stamp duty valuation and 3rd one which automatically takes higher of these two as sale consideration under section 50C. So here If I put actual sale consideration in both rows, will it amount to false declaration ? Consequences for this because if I give stamp value, then automatically IT system will pick up the higher stamp value and calculate tax accordingly. What to do then?
• Who will bear the tax burden? First Account holder or 2nd Account Holder or both or any clubbing provision?
• Sr. Citizen Mother has only Rs 1000(one thousand) per month family pension as income and does not file ITR. If she does not pay any tax at all, what are the chances of detailed scrutiny and consequences?
• If mother happens to be assesse, does she need to pay any advance tax or file ITR?
• How to get Fair Market Value (FMV) and circle rate of Land as on 01.04.2001 for calculating Indexed cost of Acquisition in 2023-24.
• How to get FMV on date of agreement/date of sale?
• If assesse declares certain FMV in ITR both on 01.04.2001 as well as on date of sale i.e. 11.08.2023, is supporting documentation required at any stage or mere declaration will suffice? Steps to be taken by IT in this regard?
• What can be the maximum Tax Liability and maximum date of depositing this tax/ITR and steps to mitigate this tax liability/payment?
Ans: Query require detailed discussion face to face. Please check with tax consultant.
