You can in sale deed mention sale consideration as Rs 34 lakhs but have to pay stamp duty as per circle rate

2) under section 56(2) vii) in case of buyer the difference between sale price and circle rate would be determined to be the income of purchaser and taxed under head income from other sources

3) you claim that fair market value is below the circle rate then in such case I0 would request valuation officer to carry valuation of property

4) the valuation determined by valuation officer would be sale price of the property if valuation determined by valuation officer is lower than circle rate

You must mention the actual sale price in the deed and nothing else/

The circle rate is for the purpose of calculating the stamp duty and it may not be same as the selling price.

So there is no need to do so and go by the actual dealings.

Hello,

The selling price may not be same to that of the circle rate.

Circle rate is mentioned for the purpose of calculating the stamp duty.

and you may mention 34 lakh as the selling price of the land.

Regards

Purchase of property is a contract between buyer and seller. If parties to the contract are ready to purchase property below the prevailing market rate or circulate, this contract is valid. It is not mandatory for the buyer to purchase property at the circle rate. Circle rate is decided by the government for the purpose of imposition of stamp duty on the Transfer of Property. This Circle rate is revised by the government year to year. However it is not mandatory to purchase property on Circle rate, therefore you can purchase property below the circle rate but you have to pay stamp duty on the basis of circle rate.

1. It is entirely up the seller and buyer to decide what the sale consideration has to be. Sale consideration does not have any nexus with the circle rate. The stamp duty, regardless of the sale consideration, has to be paid on the circle rate.

2. Since the circle rate is much in excess of the market rate you can apply to the valuation officer to conduct the valuation of the property, in which event the value determined by the valuation officer shall be the sale price.

Hi

You will have to pay stamp duty and registration charges as per the circle rate ie 50 lakhs.

If you are going to pay the 34 or 40 lakhs in white, then as per the Income tax Act, the differential will be taxed in the Buyer’s (ie you) as well as the Seller’s hands.

For the seller, the law presumes that he has sold at Rs 50 lakhs, and the sale consideration is increased accordingly.

For the buyer, the law presumes that you’ve received a benefit of buying at a lower price, and taxes the difference as “income from other sources”.

Regards,

Keerthiga Sharma

M.Com., CA, LL.B

You can show the value of the property to the extent of the consideration amount but you are required o pay the stamp duty as per the circle rate.

There is nothing wrong in showing the lesser consideration amount to that of the circle rate.