Stamp duty on apartment

Which value is more - consideration shown in the Agreement to Sell or consideration as per Circle Rate?

Whether Agreement to Sell is registered or not?

Circle value is only for the purpose of guidance so that loss of public revenue on account of the tendency among the general public show lesser sale value during the registration. In the instant case, circle value is not applicable. Registration need to be done based on the agreement rate.

Please note the following:

1. Yes, you will be saving a few thousands of rupees on stamp duty, if you register the sale deed by showing the considerationf or the property on Circle Rate basis.

2. But, in the process you will be helping in generating black money (to the benefit of the Seller) as he will not account for the extra amount which you will give him in cash.  He will also be paying lesser Capital Gains Tax.

3. You will have problem in arranging the huge cash which you have to give to the seller.  Even if you withdraw from your own bank account, if someone like Income Tax Authorities ask you what did you do with the huge withdrawal, what will you answer?

4. If you register the property on actual consideration basis (yes by paying little more on stamp duty), then you can always claim the correct cost of acquisition of the property.  Otherwise, when you re-sell the property and realise full market value, then you have to pay more towards Capital Gains Tax (as your original cost of acquisition as per Circle rate will be less).

5. God Forbid, if any problem arises in regard to the sale deed and property, then you will be able to sue only to the extent shown in the Sale Deed (and will not be able to recover the extra amount which you pay in cash).

LET BETTER SENSE PREVAIL.