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Agreement value

sekharsc (partner) (88 Points)

25 March 2025

What happens if someone inserts a wilful wrong stampduty value to avoid higher tds while paurchasing a property

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7519 Points)
Replied 25 March 2025

Consequences: 1. *Penalty under Section 271(1)(c)*: The buyer may be liable for a penalty under Section 271(1)(c) of the Income Tax Act, 1961, for furnishing inaccurate particulars of income or concealing income.

2. *Prosecution under Section 276C*: In severe cases, the buyer may face prosecution under Section 276C of the Income Tax Act, 1961, for willful evasion of tax or failure to pay tax.

3. *Loss of Exemptions*: The buyer may lose exemptions or deductions available under the Income Tax Act, 1961, due to the incorrect disclosure.

4. *Interest and Penalty on TDS*: The buyer may be required to pay interest and penalty on the TDS amount that should have been deducted but was avoided due to the incorrect stamp duty value.

Detection and Verification: - *Income Tax Department's Verification*: The Income Tax Department may verify the stamp duty value declared by the buyer through various means, including: - *Registration Documents*: Verification of registration documents, such as the sale deed or agreement to sell. - *Stamp Duty Records*: Verification of stamp duty records to ensure the correct stamp duty value was paid. - *Bank Statements*: Analysis of bank statements to verify the payment of consideration.

Recommendation: 1. *Accurate Disclosure*: Ensure accurate disclosure of the stamp duty value to avoid any consequences.

2. *Consult a Tax Professional*: Consult a tax professional or chartered accountant to ensure compliance with tax laws and regulations.

3. *Maintain Proper Documentation*: Maintain proper documentation, including registration documents, stamp duty records, and bank statements, to support the accuracy of the stamp duty value declared.

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