Advocate Angad Mehta

Questions Answered by Advocate Angad Mehta

Q: Planning to sell house got as gift will i incur capital gain tax

My Father bought a flat in Mar-2005, thereafter he got a Gift Deed registered against my name in 2015 subsequently transferring the right to sell, rent out and everything to me. Now I plan to sell this house, will I incur Capital Gain Tax. Considering that flat was not sold by father to me, it was only gifted wherein now I have got the right to sell, the capital gain tax should not be applicable. Please correct me if I am wrong.

Advocate Angad Mehta answered
you will have to pay capital gains tax if you sell the property. capital gains tax is applicable when an owner of the property sells such property and does not re-invest the sale proceeds into property. merely because you have been gifted the property will not exempt you from capital gains tax.

Q: Builder extended stilt parking (ground) right to basement owner

Our building has 8 flats with stilt parking on ground floor and a basement. Builder sold basement with a parking(2wheeler) and a toilet both of which are in stilt floor(ground). Access to basement is from outside and access to stilt floor and 8 residential floors is through main gate. Initially we were told parking was only for floor owners but not exclusively mentioned on sale deed. stilt floor is common for access to the floors but not for basement.Building is in one of 895 unauthorised colonies soon to be regularised. On what grounds we can deny the access to the basement owner for the stilt floor? 150sq yards-area of building. Dental clinic is in the basement & Owner is not a resident of the building.

Advocate Angad Mehta answered
that will depend on the terms of your sale deed. the sale deed will specify what rights are given to the owner of the base. your best option is to file a suit for permanent injunction and declaration before the concerned court.

Q: Removal of building structure. How to take stay?

what decision shall I make on the court date the stay was granted the basis of building structure and our's area does not come under noc. the court itself give orders for the removal of the constructed base or shall i have to put this point through my lawyer I have my court date next day

Advocate Angad Mehta answered
your lawyer will be able to advise you better in this situation.. if the construction is illegal, then it is highly unlikely that the court will perpetuate an illegality by extending the stay in your favour.

Q: How to transfer the title document, please advise

We were defendants in one of the family property dispute. Properties have now been partitioned and everyone has agreed in the court. Final Decree is on it's way but we have not made L&DO the party in this dispute. How can we transfer the Title documents in our name? How can the court direct the L&DO office to transfer the Title in our name since it was not made a party in this case?

Advocate Angad Mehta answered
once the decree is out, make an application to the L&DO. if the L&DO refuses to transfer the title, you will need to file a separate suit. it is perhaps too late now but can make an application to implead L&DO before the final decree is out.

Q: Tax implications of sale of property and transfer to Daughters

I am the original allottee of a DDA Flat in a Co-operative Group Housing Society in Dwarka, Delhi. This Flat was allotted to me in the year 2002 not converted into Freehold. Hypothetically if I sell this flat may fetch a price of around one crore rupees. I have two married daughters, to whom I want to give out the i/3 of the proceeds to each and keep balance 1/3 rd with me. Both my daughters are in the process of buying their own flats in due course and this amount will be useful to them for their purchase as they are living in different cities. I want to know the best option keeping in view taxation issues should I sell the property first and transfer the proceeds to my daughters or should I transfer the flat in the name of my daughters and thereafter they can sell at appropriate time when they need the money to pay for their own purchase Can I convert this this flat into 'Freehold' property in their names Regards, Rajagopalan, 09868169984

Advocate Angad Mehta answered
that really depends on whether you want to live in the flat or not. if not, then transfer it by way of gift to your two daughters. the other thing you need to keep in mind is if you sell the flat, then you need to reinvest the sale proceeds into property itself to avoid capital gains tax. you cannot convert the property to freehold in their names as you are currently the owner. once the property is transferred by way of gift, they can then have the freehold issued in their respective names.