1) you should tell him to agree on agreement price only or can try to get sorted out among yourself by via of talk and do settlement instead of fighting legally, problem should get sorted out.

Hi, it is advisable to enter the amount of transaction in the agreement ..If the transaction is 16 lacs then the agreement should of 16 lacs and not of 19 lacs

See if he want to make a sell agreement of 19 lakh then ask him for a recipt of 19 lakh paid and he has to pay for extra stamp duty on four lakhs it won't be any problem.

Also it is benicial for you can take deductions of 19 lakh in your income tax payment he shall be liable for income tax you shall get benifit as deduction as you are purchaser you are spending to purchase house property.

per section 50 C of income tax act if property is sold for rate below the circle rate then circle rate would be determined to be sale price of property by income tax authorities and capital gains tax levied accordingly to the seller

2) if 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

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

4) if valuation officer determines sale price to be higher than circle rate than circle rate would be deemed to be sale price of property

5) 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

6) in your case sale price is mentioned as 15 lakhs but circle rate is Rs 19 lakhs

7) the difference of Rs 4 lakhs would be determined to be income of purchaser and you have to pay tax accordingly

rs 4 lakhs difference would be regarded as income from other sources and taxes accordingly

1. He is wrong. It is not he but you who shall have to pay Income Tax on the difference between the circle price on which the stamp duty has been charged and the actual price you have paid.

2. The Income Tax department will treat that you have paid Rs.15 lakhs but got the property worth Rs.19 lakhs thus making a gain of Rs. 4 lakhs on which you shall have to pay Income Tax.

3. The seller won't have to any Income Tax since he has received Rs.19 lakhs by selling his property.

4. If he has made any capital gain by selling the said property after indexing the cost, he shall have to pay long term capital gain tax considering Rs.15 lakhs as his receipt and not Rs. 19 lakhs.

1. No, the seller does not earn anything in this case.

2. It is p[resumed that the buyer has earned Rs.4 lakhs by paying Rs.15 lakhs while buying a property worth Rs.19lakhs as explained above.

1) Yes, that will be treated as other sources of income for both buyer and seller. So try to show loss in the property the seller can shiw it long term loss in the property.

1) contact IO request him to appoint valuation officer to carry out valuation of the property

2) valuation determined by valuation officer would be sale price of the property

You can get valuation of property but it is not required you and seller can amicable settle. And the agreement price can be use with the Income tax department no other report is required. The department shall accept same.

Sir, the stamp valuation is as per the goernement records so you cannot do anything with that. However you should have made a lower quote to lower the stamp duty at the time of taking out quotation. The seller has agreed to sell it for 15 lakhs, and he is bound to do so if you have an agreement for sale. You may file a specific performance suit and take an injunction upon the property. The Court will register it in your name at 15 lakhs even if the seller doesn’t register it in your name. Please call for more details.

1. Your evaluation of the market value will not be considered by the I.Tax department at all.

2. They will accept the price of the property based on which the stamp duty has been paid by you which is calculated as per the circle rate of the said property recorded with the office of the Registrar.

3. You shall have no scope to show any value other that what has been recorded in your sale deed rewgistered with the Registrar.

4. If you are in good terms with the seller, then you can pay him Rs.19 lakhs through cheque and then take back from him Rs. 4 lakhs in cash and in that case you won't have to pay any Income Tax on the said purchase but Rs.4 lakhs will become your black money.

Yes, it should be done I think the same manner.

In fact after that you can very easily make a new agreement to sell.

1. The valuation mentioned in the deed is only taken to be the income of the builder and not the amount which is mentioned in the valuation report of the Registrar.

2. So there is no requirement for you to mention the enhanced value and if you do then liability upon you to show the income supporting this much of expenditure.

The value of stamp duty is required on the circle rate of the property of the market value which ever is more and in case this case there is no restriction to sell the property below the circle rate and the same amount will be written the agreement and sale deed.

The long term capital gain tax will be calculated on the sale price less indexed cost of the property.

Only stamp duty amount will be as per circle rate.

Even if you buy the property for a lesser value, you may have to pay the stamp duty as per the current market value if the property is being purchased by executing a rgistered sale deed.

But is it true that the extra 4 lakh (19-15) would be considered income from the other sources for both the buyer and seller ?

You can consider it that way or can show it in any account for the purpose of stamp,duty and registration.

How to show loss in the property? The property is 20 years old and lot of renovation is required. Should I contact a valuation officer or something similer to evaluate the propoer market value of the property and show it to income tax Department?

The stamp duty should be paid as per the circle rate even though the transaction or consideration amount was reported to have passed to a lesser amount

If the agreement is of 19 lakhs then the stamp duty and registration will be of same value. Tax implications of capital gain will be of the agreement value.

In India buying or selling of properties (Land & Building) at a value lower than the stamp duty value is very much prevalent to save the Stamp Duty on registration, which causes loss of revenue to the Government. Loss is not of just Stamp Duty revenue but also of Income Tax revenue that is to be paid by assessee on Income under head Capital Gain. Therefore in order to plug such loss of Income Tax revenue certain provision were inserted in the Income Tax Act, 1961. In this Article we shall be analysing those provisions.

Asseessees in order to save Income Tax makes an agreement to sell at price lower than the actual sale consideration and adjust balance amount in cash which adds to his/ her black money. In order to prevent such loss of income tax revenue Section 50C, Sec 43CA and Sec 56(2)(vii)(b) were introduced time to time which plugged this evasion to an extent.

Therefore it best to purchase the flat at the read reconker rate or higher than that.