Purchase of land at higher cost than the market value
Guest
(Querist) 17 July 2012
This query is : Resolved
Dear Learned Friends,
A friend of mine bought a land of 1200 sq. ft. in Arakkonam, Tamil Nadu.
He paid cash of Rs.1,08,000/-, which includes registration.
At the time of signing the document, he did not observe anything and more so, there was no time to even glance through the document
and he was also not aware of any formalities, as this was his first
land purchase in his life.
But, when his accounts were given to audit, things are coming to light that in the REGISTRATION DOCUMENT, it is stated that
Rs.37,500/- is the market value and for this, stamp papers are valued at Rs.3,000/- only.
Now, it is evident that for Rs.37,500/-, he paid Rs.1,08,000/-.
My friend wants solution for this.
He is keen to show the full value Rs.1,08,000/- in his accounts and he does not want to show the inappropriate sum.
Is there any mistake on my friend's side on
the above transaction ?
Ans : .................
Even there is a mistake due to his ignorance, what is the proper way out.
My friend does not want to have any dispute
with anybody, though he is having the receipt for Rs.1,08,000/-.
My friend is willing to pay the deficit stamp duty on the balance amount.
Kindly advise the solution to proceed further with the Registrar Office or to the concerned official for finding solution.
Thanks in advance for your valuable advise.
Devajyoti Barman
(Expert) 17 July 2012
A deed of rectification needs to be executed and registered which requires the signature of the Vendor.
Under price of the market value is otherwise not harmful.
