A sales contract is a legal document that describes the terms of a real estate transaction. It lists the price and other details of the transaction, and is signed by the seller and buyer. In addition, Section 54 of the Property Transfer Act 1882 defines a sale as a transfer of ownership of a property greater than the value of Rs 100 can only be done with a registered document that will be the deed of sale. The sale agreement is not required to be registered under that law. Similarly, a taxpayer is required to maintain the homehold with a home loan for a minimum of five years, otherwise section 80 C tax deductions will be cancelled for repayment of the principal amount of the home loan during the home transfer year. It also takes into account the actual date of the transfer and not the date of execution/registration of the contract. A sales contract is also called a sales contract, sales contract, contract or sales contract. As part of this agreement, the owner retains ownership of the house while the buyer makes monthly payments, as he or she would make to a mortgage lender. When the purchase amount is paid, the seller signs the deed to the buyer. Upon full reading of the agreement, the Income Tax Tribunal concluded that the sale or transfer was not completed at the time of the contract and that the transfer of the property took place when the remaining payment was made and the holding was returned to the purchaser, which occurred in the 2011-12 fiscal year. Capital gains were therefore taxable in the 2012-13 late year, not in the 2011-12 delay year, as the expert did in error.
The Tribunal also found that the registered agreement was a sale agreement and not a sales contract. Under the Transfer of Ownership Act, a sales contract, with or without property, is not transportation. Section 54 of the Transfer of Ownership Act provides that the sale of a property can only be done by a registered instrument and that a sale agreement does not create interest or fees for its property. In the future, a sale agreement is to be promised that the property will be transferred to the rightful owner, while the value of the sale is the actual transfer of the buyer`s property. The M/s Talwalkar Fitness Club had agreed to sell an apartment for Rs 2.2 crores and had received an advance of Rs 20 Lakhs against the agreement. The sale agreement was executed and duly registered on February 14, 2011. The agreement had a clause stipulating that the sale/transfer would come into effect, with the payment of Rs 2.2. In accordance with the terms of payment provided in the agreement, the final payment must be made before May 26, 2011, i.e. in the following year.
In accordance with the terms of the contract, the property must also be remitted against the full payment of the sale consideration. The seller was also required to pay maintenance and other costs until the property was returned. Since the date of the final payment and detention of the agreement and the date of the final detention fell in two separate years, a dispute broke out between the tax authorities and the taxpayer during the year in which the proceeds from the sale of the property would become taxable. The Income Tax Office considered the registration date of the property to be the date on which the transfer took place and therefore imposed capital gains in the 2011-12 late year. The case was brought before the Income Tax Court. For the sale of a property, there are usually two types of agreements – a buy and purchase or sale agreement. The sales contract is stamped and registered in accordance with the registration law.