Hi,
My father has sold a residential plot in Haryana after 8 years of possession and he is planning to invest the money to buy a ready to move in flat in Noida with me as a co-partner. We have shortlisted a property of Amrapali builder where the rates are reasonable as the registry is not being done due to builder's pending payment towards Noida Authority.
In this case there are no loans available and we have to somehow manage to buy this for personal residence.
The registry will not be done now and we don't know how many years will it take to get this issue resolved as a case is already filed by the residents who are living here from last 5 years. My query is that in this case, if we purchase this property without registry and only the transfer is done in builder's and Noida authority's records, will my father be able to get capital gain tax benefit or registry is mandatory for claiming that.
Would be obliged if you can guide
3 Answers
Hi,
May I know whey do you like to buy a property in a project which is subject to some litigation/issues.
There is no clear-cut answer to your question, as this can be very subjective.
If the construction is completed, ideally the registration has to be done to claim LTCG tax exemption.
In case, you are buying a ready-to-move-in property, you may consider buying a property where the Registration is possible.
Related articles :
https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
https://www.relakhs.com/long-term-capital-gain-exemptions-court-orders/
https://www.relakhs.com/under-construction-property-holding-period/
Hi, thanks for your answer. Would like to share some more details so that you can help me out.
The flat we are planning to purchase is the one which I am residing from last 3 years as a tenant.
The property is not as such in dispute but it is the builder that has not paid his dues for 7 diff projects to Noida authority and thus registry is on hold.
Considering the law ofostate wouldn't let the owners be cheated will open the registry in coming time as owners have made payments or are paying emi's regularly.
The reason to give it a thought to buy is that as there are no loansa available due to registry concern, we are getting it at a good price.
We want to take this flat for residential purpose and thus even if takes time for registry, we are fine with it.
As of now the only concern is that whether we'll get LTCG benefit with only ownership transfertor for that registry is mandatory or have a specified time limit for registry.
Hi,
As i mentioned in my previous comment, this scenario can be very subjective.
Without the Registration, I doubt if a civic body changes the title ownership details in their records. (This is known as Mutation).
You may go ahead with the deal, if you believe that it is worth. Suggest you to make payments through cheques/online wire transfers. Keep all the available documents (after the transaction) safely for your future reference.
Also, kindly consult a CA/Civil lawyer as well.
Related article :
https://www.relakhs.com/mutation-property-transfer-title-records/
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