Registration and stamp duty
kishore
(Querist) 18 December 2016
This query is : Resolved
I have made an agreement for land from builder. All the money given is white (by cheque and account transfer). Now builder says i can go for registration either by government guidance valve or any value upto maximum actual purchase value.Please suggest what i should do.
A)What if i get registered with guidance value?
1.Is there any legal problem?
2. What will happen if i sell the property after 10 years and i take money everything in white and pay tax to government?
3. Can i avail capital gain tax benefit?
B) Any problem/disadvantage if i register with actual purchase value?
Thanks
YPK
adv.bharat @ PUNE
(Expert) 18 December 2016
A) 1. no
2.After 10 years its value obviously increased.
3.If u sold it after 3 years from the date of purchase then there is no capital gain tax.
B) No
GV cost or actual consideration had no relation.
Point is pay proper stamp duty as per actual valuation of property.
Will u appreciate this answer by giving like on my LCI profile?
Kumar Doab
(Expert) 18 December 2016
You have posted that:
"All the money given is white (by cheque and account transfer). "
So why should you register below this amount i.e actual value?
Rajendra K Goyal
(Expert) 18 December 2016
Differ with expert adv.bharat @ PUNE when he mentioned " .If u sold it after 3 years from the date of purchase then there is no capital gain tax."
In such case short term capital gains tax is levied.
Please guide / amend me if something wrong in my advice.
Rajendra K Goyal
(Expert) 18 December 2016
You said:
What if i get registered with guidance value? Is there any legal problem?
Reply:
The same would be considered your purchase value, what answer you have for extra payment. District registrar can slap penalty for less payment of stamp fee.
Further you may have to pay more capital gains tax if proceed to sell the same.
You said:
What will happen if i sell the property after 10 years and i take money everything in white and pay tax to government?
Reply:
Your liability for long term capital gains may increase.
You said:
Can i avail capital gain tax benefit?
Reply:
If you invest the proceeds in purchasing new property as per section 54 IT Act, it can be saved.
Rajendra K Goyal
(Expert) 18 December 2016
You said:
Any problem/disadvantage if i register with actual purchase value?
Reply:
It would be better, disadvantage would be that some extra stamp duty has to be paid.
Kumar Doab
(Expert) 18 December 2016
Transaction have already been made and recorded in bank transactions.
Pay proper duty ( on actual value) and buy your piece of mind.
Dr J C Vashista
(Expert) 21 December 2016
A good examination hall question paper.
Solve it.
Kumar Doab
(Expert) 21 December 2016
For; Further and last solution spend quality with your own counsel.
