Query related to property sale
Bhaskar
(Querist) 17 July 2014
This query is : Resolved
Dear Sir,
My friend wants to sell his property in Bangalore. The property’s (30 *40 feet) market value is Rs 60,00,000/-. The same area’s guidance value is Rs.2500/- sq.feet. He has got one buyer and ready to buy at market price but he is insisting to register only at guidance value which is Rs. 30,00,000 (1200 sq * 2500). Buyer says he will pay Rs.30,00,000/- by cheque/dd and balance amount by cash. My friend has shortlisted another property of Rs. 75,00,000/- lakh and proceed of this sale is going to be invest there. Regarding this transaction we have following question
1) Can someone register property which is below market value (guidance value) ? Will it cause any issue for my friend either from income tax or from registration department?
Thanks in advance,
Regards,
Bhaskar
Devajyoti Barman
(Expert) 18 July 2014
Getting property sold by registered deed showing less than market value on paper is common practice.
But be ensure that you get the rest money on cash on the same day.
Rajendra K Goyal
(Expert) 18 July 2014
This is happening in general in property market. There is always risk of non payment by the purchaser for the cash portion (black money), and also to invest it properly.
It is always advisable to avoid such dealing in black money.
Rajendra K Goyal
(Expert) 18 July 2014
Repeated query:
http://www.lawyersclubindia.com/experts/Query-related-to-property-sale-484816.asp#.U8ij6bFKqsw
ajay sethi
(Expert) 18 July 2014
better get it regd at ready reckoner rates ( guidance value) .
Bhaskar
(Querist) 18 July 2014
Thanks all for prompt turn around and apologies for duplicate message due to system issue.
T. Kalaiselvan, Advocate
(Expert) 18 July 2014
there is nothing wrong in getting the sale deed registered at guidance value rate and later on receiving the actual value's difference amount in cash. The taxation aspect will restrict to the registration rate.
