Capital Gains when price in agreement to sell is higher than that of sale deed

Arpit Dubey (1 Points)

23 May 2024  

Hi, I am in a bit of a situation and here is the full descripttion of it.

I am purchasing a property, a 4bhk in Noida. The society is fully occupied. Some flats are unregistered because they were purchased as investor units. The property that I am buying is also an unregistered one. It is fully paid and has no encumbrances.

I have entered into an agreement with the seller to purchase the property at 2.24 CR by signing an AGREEMENT TO SELL.

The builder says he will endorse the flat in my name until the registries are open. I am also getting a loan from HDFC bank for 1.8cr.

Now, the bank and builder requires me to buy estamp paper before hand for the loan to process. The last price at which the property was sold to the seller by the builder was 86 lakhs and the builder is asking me to get the e stamp for stamp duty at the same rate which is 5% of 86 lakhs which becomes 430000. But I will be paying 2.24 CR to the seller with 1% being the TDS. 

Builder also told me that when the registry would open the sale deed would be made of 86 lakhs.

He also told me that if I decide to sell the flat after registry then I can use the Agreement to sell to show that the property was purchased at 2.24 CR so that I pay LTCG over and above of 2.24CR.

Now my question is.

1) Is this legal?

2) If I decide to sell the property in future, after the registry. Would I have to pay LTCG by considering the price of 86 lakhs or 2.24 CR.