Mention what is agreed in MOU ie 40lacs
Seller wants to save capital gains tax by mentioning lesser value
But u insist for 40 lacs for 2 reasons
Firstly agreement value cannot be less than guideline value of govt. Otherwise you will face income tax issues that you did cash transaction. Even seller will fall in trouble
Second when you sell this property, you will incur capital gains for which you will have to pay tax. However there are deductions allowed from capital gains amount received. Like cost of acquisition. So if cost is less ie 25 lacs then you will have to pay tax on balance. Whereas if your purchase cost is 40 then your tax outgo will be lesser.
Even otherwise seller will be receiving purchase money by cheque. So he will have to account in his income tax. Whether entire sale price is mentioned in deed of assignment or in MOU, if purchase money is paid by cheque, then seller will have to account for it.
Also bank will not sanction loan on basis of amount mentioned in MOU. It will give loan for amount stated in registered assignment deed. Because even bank will want a security of higher value and not lower.
Thanx