GSankarraman 10 January 2017

6500000

I own a property in ZAMIN Pallavaram, Chennai, the guideline value of which is RS 2500 per sq ft. But the market value is anywhere from Rs 4500 to 5000 per sq ft. Would the sub-registrar agree for its registration at the market value? People say he won't, since it would result in guideline value being exaggerated. I want to know the correct state of affairs, since I don't want to sell it under guideline value, which is much lower than the market value. Let the stamp duty be collected for the market value, for which I will pay the capital gains tax.

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2 Replies

adv.bharat @ PUNE (Lawyer) 10 January 2017

Sir if u are paying higher value then accordingly u need to pay higher stamp duty to state government. Hence no question of rejection by SRO.

Will u appreciate this answer by giving like on my LCI profile?

GSankarraman 10 January 2017

Thank you, Sir, for the clarification issued by you. Since, as you say, this is purely a legal contract between the seller and buyer, the buyer being prepared to buy it at the higher value, and the seller paying the tax involved, there being no surreptitious, out of accounts deal, the SRO should have no problem to register it at the higher sum. But there is an idea projected by some quarters that this would result in guideline value having to be altered. But I don't think that this is a necessary norm for altering the guideline value. Moreover, since the transaction doesn't involve out of account money being stored, the government should welcome it, more so due to the higher revenue received by the Government.

Thanks a lot

Respectful Regards

sankarraman