Urgent - agreement value and agreed consideration amount
Ria
(Querist) 25 February 2012
This query is : Resolved
Respected Experts,
We have agreed to resell our flat built up 700 sq ft. for 34,50000 (thirty four lakhs and fifty thousand). However the buyer is insisting that the Agreement value be 22,50000 (twenty lakh fifty thousand only)and sq. ft be stated less that is 560 built up, so that they can pay less stamp duty. And that the buyer states that he will pay the rest of the 12,0000 lakh in cash.
Till now we have not signed a Memorandum of understanding or accepted any token amount.
However we as sellers do not agree to this as we will not have in case of defalut we have no proof that they have agreed to buy for 34,50000 (thirty four lakhs and fufty thousand).
Are we legally correct in insisting for showing the complete consideration amount as agreement value as well as the correct area of the flat as per the first registered agreement?
V R SHROFF
(Expert) 25 February 2012
700 sq ft. for 34,50000 (thirty four lakhs and fifty thousand). if no problem with you, you can collect bal cash. no problem showing 22.5L
SD is his headache, You cannot change Area. You only knows area, and when someone complaint your forged doc, you will be in trouble, not purchaser.
Consideration amt can be anything, no problem. Area do not agree. If Registrar make it Carpet area etc, then mention both area & do needful legally.
Raj Kumar Makkad
(Expert) 25 February 2012
As you know the entire consequences then what is the query on your behalf?
You should not execute the sale agreement below the amount of consideration.
prabhakar singh
(Expert) 25 February 2012
I come between the two you already have.
Consider the facts. your buyer does not have white accountable consideration of 34,50,000
hence insisting you to have 12,00,000 in cash.The question arises that can you manage this cash as white via your a/c???????
Then the next question is still fatal,the under mention of area for which you shall remain in danger.
Hence never agree to show the decreased area is first advise .
To manage cash tax of 12l the tax would be 30%,then consult a tax consultant and if that is manageable then ask the buyer to pay you taxes plus management expenditure which may count above 17l.
V R SHROFF
(Expert) 26 February 2012
60-40 for a practice .
Income Tax ask your income, not expenses.
You can spend in home, the entire amount.
you can deposit part by part in your non taxed fly members a/c.
If you show total 34.5L , You too is liable to pay capital gain tax @ xx%,
So it benefit you too to get Tax free income.
AREA: YOU DO NOT JUMP IN WELL:
He should be prepared to pay SD, One can't hide area, you can hide income, not area.
I know many person, Register doc with area 460 Sq Ft, and after registerng it, immediately put white ink, change figure to original area of 760 Sq Ft. on Original Regd Agreement.
99%, no one is troubled, AS ALL CHOR.
REGISTRAR HIMSELF SUGGEST TO DO SO!!
In my Thane District, Builder used to pay entire Stamp Duty, FREE for Flat/ Shop purchaser, as all TELGI duplicate Stamp papers worth Rs. 10,000 cr were used, and all, including Police. Registrar, Ministers were involved, and encouraged, and no party is made to pay diff of Stamp Duty. who lost?? Government & Poor people who were Taxed by Govt.
& Ria, being Lawyer, if you think differently, ready to take calculated risk, do it.
malipeddi jaggarao
(Expert) 28 February 2012
Knowing fully well the consequences, there is no need to ask the query. It is for you to take risk or not.
