As per Section 50C if a property is sold below the Circle Rate, the circle rate of the property would be deemed to be the rate at which property has been sold and capital gains tax would be levied assuming that the property has been sold at the Circle Rate.

2)

in case the taxpayer claims before the Assessing Officer that the fair market value of the property is genuinely lower than the Circle Rate, the Assessing Officer may request the Valuation Officer to conduct a valuation of the property. In case a valuation is conducted by the Valuation Officer and

1. Value ascertained by the Valuation Officer is lower than the Circle Rate: The Value so ascertained by the Valuation Officer would be deemed to be the Sale Price
2. Value ascertained by the Valuation Officer is more than the Circle Rate: The Circle Rate would be deemed to be the Sale Price.

1. Property can be registered at lesser than circle rate but stamp duty has to paid on cercle rate. It can explained as seller is choice. 

2. this is perfectly valid and accepted practice. 

If a property is registered at an amount less than the circle rate, it can raise suspicions of under-reporting or undervaluing the transaction to evade stamp duty or taxes. In such cases, the authorities may initiate an inquiry and assess the actual market value of the property. The buyer may have to pay additional stamp duty and penalties if the actual value is found to be higher than the registered value.

If the seller disagrees with the new circle rates, they may challenge it by filing an appeal with the relevant authorities. However, until the appeal is resolved, the circle rate remains applicable. The buyer may also face challenges in the long run if the property is undervalued as they may have to pay a higher capital gains tax if they sell the property in the future. Additionally, the buyer may face difficulties in obtaining loans or selling the property at a fair price if the property is registered at a lower value than the prevailing market rates.

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No it’s always registered at circle rate at the minimum 

1. The property can be registered below the circle rates, provided the buyer pays the Stamp Duty on par with circle rate.

2.  Perhaps you mean to say that if the seller demands circle rate what should be your stand. In that case you have to convince the seller not to change his selling price of Rs. 27 Lakhs, which he had earlier agreed while finalising the sale consideration in The Agreement of Sale and later circle rates have increased subsequent to the arrived rate of Rs.27 Lakhs.

3.  If you are paying the stamp duty for Rs. 30 Lakhs, even though in the sale deed, the consideration amount would be shown as Rs. 27 Lakhs, it's legally valid.

If any immovable property is sold below the stamp duty value (or circle rate) then such case will fall under Section 50C, Section 43CA, Section 56(2)(x) and double taxation shall apply on the difference in the stamp duty value and transfer price.

As per Section 56 (2)(x) of the Income Tax act, if the market value of a property is lower than the circle rate, then the difference is taxed as 'other income' for the buyer. While the seller of the property will have to pay capital gains tax on the circle rate of the property.

As per Section 50C of IT Act, if a property is sold below the Circle Rate, the circle rate of the property would be deemed to be the rate at which property has been sold and capital gains tax would be levied assuming that the property has been sold at the Circle Rate.

If the value assessed by Valuation officer is lower than the stamp duty value, the assessed value shall be considered as the deemed sale price. If the value assessed by Valuation officer is higher than the stamp duty value, the stamp duty value remains deemed sale price.

However please note that the property can be registered at lesser rate to that of the circle rate but the stamp duty is required to be paid as per the circle rate value of the property.

Dear client,  

As per the Indian Stamp Act, the property registration value cannot be lower than the circle rate. Therefore, registering the property at an amount lower than the circle rate is not possible legally. In case the seller does not agree to sell the property at the circle rate, the buyer can negotiate with the seller to reduce the sale price accordingly, keeping in mind the increased circle rate. Alternatively, the buyer can opt to withdraw from the deal, citing the increased circle rate as the reason.

Paying stamp duty on the new circle rate while registering the property is the correct thing to do, as per the current rules. However, the registry value of the property mentioned on the stamp paper should match the actual sale value or the new circle rate, whichever is higher. If the registry value on the stamp paper is lower than the circle rate or actual sale value, it could be considered a fraudulent transaction and could have legal implications. Therefore, it is advised to rectify the registry value on the stamp paper to avoid any legal issues in the future. You can consult a legal expert for further guidance on how to rectify the value on the stamp paper.

Property can be registered below the circle rate but stamp duty would be payable at circle rate only. There is no legal impediment.