purchasing property from a relative for undervalue

Querist : Anonymous (Querist) 02 May 2011 This query is : Resolved
Hi
can i purchase a property from my relative for less than the said government value on good faith. what will be the taxesand will there be any registration problems.

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R.Ramachandran (Expert) 02 May 2011
There will be no problem, so long as you pay the stamp duty on the basis of the prevailing government rate, which obviously would be more than the actual consideration that you would be paying. In case the consideration paid by you is more than the Govt. prevailing rate for the property, then you have to pay the stamp duty on the consideration being paid by you.