In India, if you purchase or sell property below the government-notified circle rate, the law (specifically Section 50C for sellers and Section 56(2)(x) for buyers) allows the Income Tax Department to use the circle rate as the "deemed" value for calculating taxes. You cannot simply choose to pay tax on the "gap" to resolve this; rather, if the department raises a query, you would need to justify the lower valuation or, if applicable, request a reference to a Departmental Valuation Officer (DVO) to determine a fair market value. It is highly recommended to consult a Chartered Accountant (CA) to review the specific transaction documents and assess if there is a pending tax liability or a risk of a scrutiny notice.