House property sell/buy tax query

1. Yes, capital gains will arise.

2. This is not legal way it will create consequences. It will lead to income escaping which will lead to income tax escaping.

Thanks Sourav for the quick reply.

1. But as far as I understand, a person with one home and no other property should not have any capital tax, correct? Capital tax comes into picture when I have more than 1 home/property and tries to sell one of them. Here I have only 1 home in which stay and wants to sell the same. Do I have to still consider capital tax in my case with just 1 home and no other homes/property?

2. Yes, I understand this is not legal and correct. But some buyers are quoting property value more than the actual sale value (decided between buyer and seller) to banks to get more loan amount sanctioned by banks. This way, buyer do not have to pay much from their side.

But I was always concerned from seller's perspective because seller is not getting the high property value buyer quoted to bank for getting loan and seller will get only the amount which was decided between buyer & seller. In short, on papers, seller gets more amount but in reality he is getting less. 

 

Sale agreement more than the actual sale too dengerous for seller , his capital gain will increase and will increase tax amount and if u r actual sell value is showing in your bank statement it will deemed that rest of money is taken as cash which is strictly prohibited and violate the proviaions of section 269ss/st which attracts penalty equal to sum reveived in cash so think twice before doing such silly mistakes