Property sale original and next sale - guidance value
Stephen
(Querist) 05 August 2015
This query is : Resolved
Dear Lawyers and Tax Experts,
From your esteemed knowledge, I seek your advice and opinion on the below property matter.
a) Couple of years back I bought a piece of property in Bangalore under B-Katha paid fully White from my NRI a/c and amount documented in sale deed is ~ 25 Lakhs Plus appropriate registration charges.
b) Now I am planning to sell the same after factoring nominal profit for ~ 32 Lakhs which are agreeable for buyer. However the buyer intends to pay in White only to the extent of ~ 24 Lakhs while the difference between 32 – 24 would be paid in cash and presumably he would register for ~ 24 which he states as per guidance value prescribed by Govt.
As we are likely to enter into agreement, given the above original actual transaction both in sale deeds and financial trail and the intended sale prospect. As the new sale deed value (~24 Lakhs) is more or less equal / less to the original sale deed value and buyer claims it is the permissible Govt prescribed guidance value, will the sub-registrar allow when compared to original deed value.
Also how to ensure the cash transaction (difference between 32 – 24 Lakhs i.e 8 Lakhs) is handled between buyer and seller through applicable legal means.
Thanks in advance
Stephen
Guest
(Expert) 05 August 2015
Better Consult the CA Club Of this same Forum whose E Mail ID is just below in this Thread and Proceed with the help of Local Good Advocate.
rajagopal.s
(Expert) 05 August 2015
Hi
if the property was bought by you for 25 lakhs, if you register for 24 lakhs, by very nature of transaction you will be subjected to Income Tax queries and do not understand why you will settle to take cash after you paying money in white.
better ask the buyer for a cheque for 32 lakhs.
Sub-registrar will always go by what is the prevalent market rate and he will not object to any sale price as long as it is not below the market rate.
if you still cannot convince the buyer to part with 100% cheque, better negotiate with him to give him 25 +3( 28lakhs) in cheque and balance can be in cash. This way you can always justify the sale price of 28 lakhs . Please also note that you will be subject to capital gains tax and the same is payable by you upon sale of your property.
Rajendra K Goyal
(Expert) 05 August 2015
You have paid purchase money in white from your NRI account.
There seems no reason to agree to receive part payment in cash / get the registration for lower value then purchase value. The money received by you above amount for which sale registered would be black money. Such transaction can not be recommended.
However, for capital gain received, if you get the sale deed registered for 32 lacs you have to pay capital gains tax.
Anirudh
(Expert) 05 August 2015
If the purchaser is interested in buying your property, better ask him to pay the stamp duty on the consideration value of Rs. 32 lakhs and do not agree for any payment by means of cash. Be strict.
