Stamp duty is only paid to govt. Selker and builder are only paid consideration. If you have properly paid the same them there will be no issue
Confusion of calculation of stamp duty - transfer case from old buyer to me through a builder
I bought a land of 251 Sq Yard from a seller on the basis of transfer as the land is still with the builder, the agreement to sell between me and the seller is @ 2 Cr and the transaction value between builder and the seller is @ 1.75 Cr, Now I have paid the seller and the builder both at respective pending amount. the stamp duty is being calculated @ 1.75 Cr Need to understand if there is any issue in this transaction
Asked 3 years ago in Property Law
Religion: Hindu
8 Answers
Stamp duty would be calculated based on consideration mentioned in sale deed executed in your favour
Value of land is calculated for stamp duty is 1.75 Cr. actual sale price is 2cr. Most of sale transactions of immovable properties are registered at lesser property to avoid higher stamp duty but if any dispute arises between seller and purchaser, the market value mentioned in sale deed will be relevant and not the actual price paid. It is safe to mention actual agreed price, the money involved are huge, risk is not worth taking.
The stamp duty is payable @ the value of consideration quoted in the sale deed.
The extra amount given to your seller is your problem and the seller's problem, it will not involve any stamp duty because this extra amount was actually the terms between you and the seller and not as per the original sale consideration value as quoted by the builder originally.
Dear Mr T Kalaiselvan, Thanks for clarification and understanding the issue, as a follow-up question I need to know that as far as the extra money given to the seller is concerned as per the agreement to sell and not part of the original sale agreement with builder. Will I be in any trouble from the Property/Income Tax point of view ? Is "Agreement to sell" between me and the seller enough to justify this transaction?
Asked 3 years ago
since your agreement for sale mentions that you have paid seller Rs 2 cr and seller declares it in his income tax returns you may receive a query from income tax department as to why in sale deed with builder it is mentioned as rs 1.75 cr
Yes it's enough
- You have to pay the stamp duty , which you are going to mention in the sale deed , even if you have paid extra amount to the seller.
- Further , if the sale agreement is registered , then you cannot change the amount in sale deed .
It is the problem of the seller to give an account of this extra money in his ITR and you cannot be held liable for any tax for the amount that you have paid towards purchase of an immovable property.
Instead of agreement to sell you can demand the execution of sale deed directly by the builder in your favor since you have paid full sale consideration amount.