• Property sale advice

Sir my friend has a site in Bangalore. Now she wanted to sell it off.the agent is saying that, there the govt rate Rs 1400/sq ft but the selling rate is only Rs.900/sqft. the party will pay the stamp duty as per Rs 1400/sqft and the sale deed will be prepared for Rs 900/sqft.If she sells the site in this situation what will be the problems for my friend pl advice
Asked 8 years ago in Property Law
Religion: Hindu

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5 Answers

The undervalue should not be a glaring difference. However there can be no legal impediment in execution of sale deed if the stamp duty as per government guideline value has been paid and recorded for the property being sold at the ratee less than the government guideline value.

T Kalaiselvan
Advocate, Vellore
89117 Answers
2436 Consultations

1. It is true that the real estate rates have fallen throughout our country, more so in Bangalore.

2. Guidance value in many places in Bangalore is higher than the actual market price.

3. That is the reason why some buyers are getting the property at a price lower than the Government fixed guidance value and they are paying stamp duty for the guidance value.

4. However have one to one talk with the buyer to find out the truth regarding the consideration price.

5. The problem you may encounter with such deal may be with Income Tax department who may grill you for under valuation of the property.

Shashidhar S. Sastry
Advocate, Bangalore
5557 Answers
338 Consultations

1) under section 50 C of income tax act if property has been sold at rate below the govt rate the circle rate would be deemed to be the sale price and capital gains tax levied accordingly

2) however in case assesee claims before the Assessing officer that market value of property is below circle rate thane AO can requet valuation officer to determine valuation of property

3) if valuation ascertained by valuation officer is below the circle rate then the value so determined would be the sale price

4) if value ascertained by VO is higher than circle rate then sale price would be the circle rate

Ajay Sethi
Advocate, Mumbai
98915 Answers
8044 Consultations

1. Your friend will have no problem if he sells his said property at Rs.900/sft and paying the stamp duty considering the price as Rs.1400/sft fixed by the Government.

2. Every where Govt has fixed the running rate for registration which is much higher than the actually prevailing price for generating higher level of revenue and also for underpaying stamp duty by showing lesser amount as the price for registration of sale deed.

3. The amount paid by him for purchasing the property as mentioned in the sale deed will be considerd as actual payment made by all the concerned Govt. Departments.,

Krishna Kishore Ganguly
Advocate, Kolkata
27606 Answers
726 Consultations

Hi, You should not believe agents. Can you let me know the area of the site? . Do not get into problems by communicating with agents.

thanks,

adv.niranjan,

mobile - .

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

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