Contradictions on sale of property

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Chandrika Subramaniyan (Querist)

01 December 2013 This is a question based on my learnings on Sale of a property.
Seller and Buyer want to report the full value of sale on registration. But I understand that the registration value would only be determined by the property registration department based on the guideline value plus the age of the building and/or may be the amenities and premium location . This may bring the registration value of the property lower than sale value. The difference seems to create an avenue for unaacountable moneys.
What then may be a solution if one wants to be transparent ?
The Centre seem to want to stop this unaccountability where as the State Departments seem to have their own reason to do what they do.
Grateful for any observations on this. Would certainly be a learning experience on the subject,
Thanks…CS

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 December 2013 Your observations are concerned with the transparency in the property transactions.
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Due to the combined efforts of both the CG & respective SG it is being observed that day by day the transparency in property transaction is increasing.
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Moderate tax and duty rate structure has made it possible.
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Earlier property transactions were based on 40% White & 60% Black. This picture has been reversed now.
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In the projects where CG has provided incentives like 80IB, builders have taken 100% amount in white.
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Due to many in-built controls like Service Tax Applicability in Works & Service Contracts, TDS, etc have been introduced by the CG. The Builders and developers are now forced to take maximum amount in "white" due to these measures.
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In the land transactions also, relaxation in stamp duties can provide higher revenues to the state Govts. Realising the fact, State Govts. have moderated the registration fee and duties.
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So, we are moving faster towards the transparency. This issue will soon be a thing of past, as I foresee.
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