Undervaluation of property

Rubina (Querist) 19 March 2011 This query is : Resolved
I have heard that if a property is purchased at a value lower than the market value, the IT dept can take over the same said property by paying difference in value and an added 15%.
Can someone please give me more information on the same??

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M.Sheik Mohammed Ali (Expert) 19 March 2011
no, only ask deferred value amount, but the registrar only ask.

adv. rajeev ( rajoo ) (Expert) 19 March 2011
No IT dept., is no way concerned with the undervaluation of the property, only the sub-registrar can refer it to the dist., registrar if the property is undervalued

R.Ramachandran (Expert) 19 March 2011
There was such a provision in the Income Tax Act some years back. That provision had since been withdrawn.

However, for the purposes of payment of stamp duty for registration, in most of the placed, a prevailing land rate is notified. Therefore, the stamp duty would be demanded on the basis of such fixed value pre-determined by the government, even though one may show lesser consideration in the sale deed. However, if the sale consideration is more than the pre-determined value fixed by the Government, then the stamp duty is payable on the higher consideration value shown in the sale deed.