Capital Gains and Sale Deed

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Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2011 Hi,

We are buying a flat for 43 lakhs however the sale deed carries a sale consideration of 15 lakhs and a market valuation as 16 lakhs, in the Sale Deed. Our agreement to Sale document still carries the full amount of 43 lakhs. We are taking a loan of 30 lakhs and the rest of the amount is to be paid in cash.
So as per our understanding, we will register & pay stamp duty of 7.5% on 16 lakhs only.

So our question is that when we plan to sell the property after, say, 3 years, how much are we liable to pay as capital gains?
Should we undervalue our property or put more amount thus paying more stamp duty?

Also, how can we make sure the cash dealing is accounted for at least from our side? All our money is white.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

06 February 2011 Since you are the purchaser your purchase value in this transaction is 15 lakhs as per sale deed.

Whenever you will sale the property the cost will be calculated on the basis of Rs. 15 lakhs.

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2011 Sir,
Thanks for the reply. But is there a problem in future if i register the property on the guidance value rather than the actual price that i'm paying i.e 43Lakhs?
Also will the amount of 30L that i'm taking as loan will be consideredfor my tax benefits or will only 15L be considered?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

06 February 2011 Hi,

We are buying a flat for 43 lakhs however Q. the sale deed carries a sale consideration of 15 lakhs and a market valuation as 16 lakhs, in the Sale Deed. Our agreement to Sale document still carries the full amount of 43 lakhs. We are taking a loan of 30 lakhs and the rest of the amount is to be paid in cash.

Why the consideration is not being shown properly in the sale deed itself?

This is an open invitation to the IT department to take penal actions and one of the two parties, if caught, will have to suffer.
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Your loan should be called back by the bank, if sanctioned, when they will get registered document of Rs. 15.00 lacs only.
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We do not advise you to axe on your own legs.

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