Registration of property
priyank
(Querist) 05 March 2014
This query is : Resolved
Dear Experts,
my query is I have purchased a plot for the first time from builder for rs 7,60,000.i.e.(760rs*1000S.ft.) he is demanding full amt in cash. and after doing inquiry from registrar office the rate of registry according to guidelines is 350 rs/Sq,ft.i.e (350*1000=350000).
now my question is wheather the papers of registry would contain a price of 760000 or 350000.
your valuable suggestions are welcomed.
thanking you,
priyank
R.V.RAO
(Expert) 06 March 2014
the sro will register at rates as per his registry guidelines.
if plot registry is made @Rs3.5 lacs,you need to pay regn.fees and stampduty accordingly.
it appears the builder is asking difference of money as market premium.
priyank
(Querist) 06 March 2014
ok sir,
Also i want to know in purchase deed i would mentioned that the total consideration is rs. 760000 which is paid by cash on ____(dated).
wheather i can mentioned market premium in my purchase deed or not.
Anirudh
(Expert) 06 March 2014
Stamp duty is payable either on the circle rate or actual consideration whichever is HIGHER.
In case you show the entire consideration of Rs. 7.6 lakhs paid, then stamp duty is payable on that basis. (IT IS DOUBTFUL WHETHER THE SELLER WILL AGREE TO SHOW THE ENTIRE CONSIDERTION IN THE SALE DEED. He would like to restrict the sale consideration shown in the Sale Deed to the level of guideline value and not above it.)
You have to have sufficient explanation as to the source of money, in case you pay such huge consideration by CASH.
Rajendra K Goyal
(Expert) 06 March 2014
The registration would be at circle rate or market price /agreed price which ever is higher and stamp duty would be paid accordingly.
priyank
(Querist) 06 March 2014
thanks a lot to all the expert for your valuable advice.
priyank
(Querist) 06 March 2014
sir,
my whole amt. is white money and i have explanation from where i have generate it.
i want to do my plot registry for rs. 760000 only.i.e agreed price and not for guideline price i.e. 350000. can builder allowed it to do registry for rs. 760000? as i am the only one who want to do registry for 760000, does it affect me or builder?
please help me on this.
thanks in advance.
T. Kalaiselvan, Advocate
(Expert) 06 March 2014
It is better to pay the stamp duty for the actual consideration amount i.e., Rs. 7,60,000/- instead of guide line value which is lesser to avoid many problems in the future, namely undervalue, income tax and any other related issues. If the seller is not agreeing to this, you have no option than to fore-go the purchase. Think twice and act wise.
R.V.RAO
(Expert) 06 March 2014
agree with sri aniruthji and
thiru kalaiselvanji.
Mr.Priyank.if you want to register @Rs7.6 lacs,the seller will face tax issues,like capital gains tax etc..
in my view these days realty market is the cause for many of our economy ills.
if righteous people like you stand for the cause as you did,it will help the economy.
very rare that you insist full value registry, and u r prepared to account for the huge source of money and even ready to pay higher stamp duty and regn.fees etc..but seller has issues as stated above and so, be prepared to forgo the deal,unless u r able to convince the seller to agree to show full value for registry.
or both of you thrash out the issue and settle for a via media ie.an amount in between these 2 figures. good luck.
