Stamp duty and title deed

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Tejash Fafadia (Querist)
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13 January 2014 I AM PURCHASING A PROPERTY WHOSE VALUATION ACCORDING TO STAMP DUTY IS Rs.100. IF THE TITLE DEED IS FOR Rs.80, THEN CONSIDERATION FOR CAPITAL GAINS WILL BE Rs.100.

NOW , QUERY IS IF THE TITLE DEED IS FOR Rs.80, THEN WHAT IS THE CONSEQUENCE FOR ME AS A PURCHASER.?

AS SELLER IS CHARGED CAPITAL GAINS CONSIDERING CONSIDERATION AS 100, CAN I TAKE MY COST OF ACQUISITION AS 100 EVEN THOUGH TITLE DEED IS FOR 100 ??

PLEASE CLARIFY. THANKS IN ADVACNE.

Tejash Fafadia

Tejash Fafadia (Querist)
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05 October 2016 Request to Reply. Please help to clarify doubt. Main Question - title deed is Rs.80/- , can cost be taken at 100/-.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 Great question — this is a common issue in property transactions.

Here’s the key point:

* **For Capital Gains Tax purposes**, the **consideration value is the higher of the actual sale deed value (Rs. 80) or the stamp duty valuation (Rs. 100).**
* So, the **seller’s capital gains will be calculated on Rs. 100**, as per the stamp duty valuation.
* For the **buyer**, your cost of acquisition for capital gains calculation will also be considered as Rs. 100 (the higher value), **even if the title deed shows Rs. 80.**

### Consequences for the Buyer:

1. **Higher cost of acquisition (Rs. 100) means when you sell the property later, your capital gains will be computed on this Rs. 100, which could reduce your capital gains liability.** So, that’s beneficial.
2. However, your **title deed reflects Rs. 80**, which is the actual transaction value. This discrepancy might raise a question if the Income Tax Department scrutinizes the transaction.
3. It is generally advisable to align the **sale deed value and stamp duty valuation** to avoid complications, but legally the higher value is considered for capital gains.

### Summary:

* You can **take the acquisition cost as Rs. 100 for capital gains**.
* Make sure you pay stamp duty on Rs. 100 as per valuation.
* The title deed being at Rs. 80 is not the value used for capital gains purposes, so it won't restrict your cost basis.

If you want, I can help you draft or review related documentation to support this in your records. Would that help?

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