Property value less than guuidance value

This query is : Resolved 

Querist : Anonymous (Querist)
09 August 2020

Namaste sir,

1) I owns a small residential site 1200 sqft at Bangalore north rural limits.
2) The property value fixed by government guidance value is Rs 22,29,600/- ( 22.296 lakhs >>> @ Rs 1858 per square feet ).
3) But present Market value is around Rs 20 lakhs.
4) Incase if i sell for Rs 20 lakhs and receive the amount through Demand draft though Government Guidance value is Rs 22,29,600/-
5) Is it ok

Please advice


Isaac GabrielOnline (Expert)
10 August 2020

The perchaser will have to pay stamp duty to te guideleine value.

Dr J C VashistaOnline (Expert)
10 August 2020

You may sell it at any price ie., even for Rs. 10 lakh, 15 lakh or 20 lakh, government shall charge stamp duty at least for minimum rate (circle rate).

Shilesh PatelOnline (Expert)
10 August 2020

It's your choice to sell at whatever price you want.

Hemant AgarwalOnline (Expert)
10 August 2020

1. IF you are going to capitalize the Capital Loss in your Income Tax Returns, THEN you would need to ensure to get a Market Value Certificate from a registered Property Valuer, who should speficy the prevailing market value.

2. Irrespective of above, you are entitled to Sell or Gift your property at whatever value you wish and there is no legal bar to it.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

krishna mohanOnline (Expert)
10 August 2020

Stamp duty paid by the buyer. Seller can sell at any value and reflect in the sale deed. But, guideline value is less, you can approach the registrar to pay under section 41 as per the value of transaction and after inspection or revaluation sale deed will be released to the buyer.

Rajendra K Goyal Online (Expert)
10 August 2020

You can sell the property at agreed value, stamp duty has to be paid as per circle rate / guidance value or at selling rate which is higher.

kavksatyanarayanaOnline (Expert)
10 August 2020

The buyer can pay the consideration as per agreement between you and the buyer. But you have to pay stamp duty on the value of consideration or Government Guidelines value whichever is higher.

Querist : Anonymous (Querist)
10 August 2020

Thanks to all respected sirs

P. Venu Online (Expert)
11 August 2020

To my knowledge, circle/guidance value is a means to evasion of stamp duty; it is not meant to levy extra stamp duty from where the bona fide sale value less than guidance value. The respective Stamp Acts has inbuilt provisions to Take care of such situations. The Competent authority authorised to exercise its discretion where the sale value is less than the guidance/circle rate.

Rajendra K Goyal Online (Expert)
11 August 2020

you are welcome, may revert in case of further question on the query.

Rajendra K Goyal Online (Expert)
11 August 2020

Unable to agree with the advice from Ld. expert P. Venu.

Stamp fee is charged on guidance value of actual value whichever is higher.

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