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rama kaushik (nil)     03 May 2010

Change of considration amount in registered sale deed

I had registered the purchase deed for a plot in Nagpur in July 2009.The developer did not show me the deed before registration & during registration took my signature on the last page & the registration receipt .When I got the registered document,I was shocked to learn that the considration amount in the deed was shown about one third of the amount actually paid by me by cheque.I have taken up the matter with the developer & he now says it is not possible to amend the considration amount as the Registrar is not entertaining such request for correction deed.He is prepared to give a letter showing the amount actually paid by me by cheque for the property.My CA says tthat for the purpose of capital gain,when I sell the property,only the sales considration shown in Regd. deed is allowed by the Income Tax authorities & letterfrom developer to me is not sufficient proof.

What is the legal procedure to  correct the considration amount  in the registered deed or other way so that I do not lose on capital gain due to understated purchase price,when I sell the property in future.


 4 Replies

D.V.RamaKrishna (Advocate)     03 May 2010

rama kaushik,

to make any changes in a registered sale deed, one can do so only by way by of a rectification deed mentioning clearly the mistake in the original sale deed, the correct point what one wants to be and the said rectification deed to needs to be registered. In your case since the rectification is with regard to the sale consideration, you need to first pay the balance of the stamp duty, registration fee etc. for avoidance of which only your builder has stated a lesser amount of sale consideration and is also now not ready for rectification of the mistake he has done.

Anil Agrawal (Retired)     06 May 2010

But the builder will not come forward to get the rectification deed registered. 

m.kupparaju (Advocate)     04 June 2010

Dear Rama Kaushik,

As my fraternity friend Mr.D.V.Ramakrishna said you need to first pay the balance of the stamp duty, registration fee etc. for the lesser amount of sale consideration stated by your  Builder and in Rectification Deed you show actual  sale consideration  amoung as desired by you and sk the builder  to execuate a Rectification Deed in your favour at your cost.

Anil Agrawal (Retired)     04 June 2010

Stamp duty has to be adjudicated by the Stamp Office. What is written in the deed is immaterial.

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