Query on risk of selling apartment mentioning lower value in the deed
Abhijit Banerjee
(Querist) 18 July 2012
This query is : Resolved
I am a seller and I'm selling a residential apartment in Rs. 20 lacs. As per Govt. valuation the value of the property is also Rs. 20 lacs. The buyer is ready to pay stamp duty on the above value of Rs. 20 lacs but he wants me to make the legal deed on lesser value, i.e. Rs. 15 lacs.
In the above case, please guide me, as a seller what type of risk I may encounter.
ajay sethi
(Expert) 18 July 2012
in mumbai we have a ready reckoner which gives value of property of various areas . generally all agreements are based on said rate and stamp duty paid accordingly .
in your case buyer wants to pay you rs 5 lakhs in cash. you have to take the call . we would advise you take entire money ie 20 lakhs by cheque only
V R SHROFF
(Expert) 18 July 2012
You can show in Agreement whatever value you mutually decide.
That becomes the official consideration value for your all accounts, Income Tax purpose etc.
Balance amount is your indoor management,
to adjust as per advise of your CA etc.
Remember that if u had purchased it for say Rs. 5L, all the bal amount is your Taxable income, except the depreciation, cost of rising per year, and whatever you reinvest in a fixed period. [ Same rule apply to purchaser when he sell it ]
You cannot deposit cash in your bank.
go to your I Tax Consultant and act accordingly.
Purchaser may not have Bank Bal to pay you in white!! You may not like to pay I tax , and want cash!! Both party have their problem??
We lawyers will only advise to collect entire amount in Cheque , and show it in Regd Sale Deed. (So this is CA Problem)
Raj Kumar Makkad
(Expert) 18 July 2012
If value of the property according to collector rate is of Rs. 20 lakh then you cannot get the registration below that amount otherwise you shall have to pay the arrears of stamp duty later on from your own pocket including facing the cases.
