Legal Question in Real Estate Law in India

I have a residential premises in Mumbai.

I want to sell it to my brother.

My purchase price was 8.5 lakhs and my selling price is Rs.24 lakhs.

There is a bank loan on the flat.

In such a scenario please advise

1. Do I have to pay a capital gain tax and what will be the amount in this case.

2. Do we have to pay the society charges and take permission of the society.

3. Has the property to be registered and registration charges to be paid at what rate.

4. Do we need to take the banks permission and in case my brother wants to take loan on the

flat from the same bank then what is the procedure.


Asked on 6/05/10, 1:20 am

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

1. You would be required to pay capital gains tax. It has to be calculated as per the provisions of Income Tax. Consult your CA.

2. Society permission is necessary. In Maharashtra, Transfer Fees has ceiling limit of Rs.25,000/-.

3. There has to be a registered document for sale/transfer of immovable property valued more than Rs.100/-. Stamp Duty and Registration Charges are payable as per relevant laws.

4. You need to repay loan and obtain necessary release/discharge from the Bank before you could sell the property.

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Answered on 6/05/10, 11:02 pm


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