Regarding income tax on property registration
Satya Dev
(Querist) 01 August 2014
This query is : Resolved
Sir,
I have registered 3 Acres of my Agricultural land in July, 2014 based n an agreement (unregistered) made in July, 2011.
The buyer had already paid total amount (Rs. 15 Lakhs) when we made the agreement in 2011. But in July, 2014 when I actually registered the property (3 acres), the Market Value (Based on which stamp duty is calculated) the property increased to 1 crore 14 lakhs.
As the registration is complete now, will I face any Income Tax issues because on the Sale deed it shows a higher amount than what I had actually received ?
K.K.Ganguly
(Expert) 02 August 2014
1. The sale deed did not show that you received higher amount,
2. It showed that the market price is much higher than the consideration you paid,
3. If the I.T. office can not detect any extra payment made by you which has not been recorded in the Sale Deed, you need not worry,
4. Relax and preserve all your Bank records as evidence of your income and payments made.
P. Venu 
(Expert) 02 August 2014
Higher value should not have been shown on the sale deed.
Satya Dev
(Querist) 02 August 2014
Thank you Mr. Ganguly and Mr. Venu
Suhail A.Siddiqui
(Expert) 03 August 2014
IN CASE INCOME TAX OFFICER ABLE TO DETECT THAT U HAD PAID MORE MONEY, WHICHEVER MENTION IN SALE DEED, HE MAY ASSESS FOR THE SAME U/S 148 (IF TIME BARRED) AND SUCH EXCESS MONEY WILL TREAT INCOME FROM UNDISCLOSED SOURCES IN YOUR HAND FURTHER CASE MAY BE REFER TO SELLER'S ITO FOR ENHANCED CAPITAL GAIN PURPOSE.
Sri Vijayan.A
(Expert) 03 August 2014
1. You have to mention the actual value received/ paid.
2. If market value (higher than what is paid) is mentioned in the sale deed, it attracts taxes.
3.Stamp duty is different from the tax.
Stamp duty is collected based on the higher value (of actual or market).
4.The tax is collected based on the value that is actually paid.
T. Kalaiselvan, Advocate
(Expert) 03 August 2014
The experts have clearly clarified your query leaving nothing more to add.
Satya Dev
(Querist) 03 August 2014
I will surely take all your suggestions into consideration .... Thank you all
