Registering the property in lesser value than the Government guidance value
I have finalized a property in Bangalore, negotiated with seller; the negotiated property value is 30% lesser than the Government value. I am ready to pay stamp duty on Government value; But seller is not okay with this, since seller would have to pay income tax on stamp duty value (not on the actual sale deed consideration value) as per income tax act section 50c.
Instead seller suggesting below process:
1. I would have to pay stamp duty on actual negotiated (sale deed consideration) value.
2. After registration, document would be forwarded to DRO office.
3. Seller would discuss with DRO office registrar, and get the Government value corrected according to market value. DRO office will release government ordinance for the same.
4. With in two weeks, document will be released.
5. Sale deed would be submitted to bank, then Bank loan DD would be collected.
Could you please suggest whether Can I agree on this process and proceed further?
Will there be any problem in future for this property?