Money in excess of property registration value

stamp duty is to be paid either on market value or consideration amount. capital gain is attracted while transfer of property, to save tax,u can invest amount of consideration in agri land,construction of house within 2-3years from date of receipt of consideration. for more clarity pl refer section 45 of income tax act

Registration is usually fixed at Rs. 30,000.

You will have to compute the capital gain on the sale of this property. In case you are aware of the tax liability and willing to pay the tax, then it is your choice.

If you want the money in white, all cheque or transfer, and if you agree to reduce the agreement value by 50%, then the remaining 50% will be given in cash. Your tax liability will also reduce to that effect but to manage the cash will be difficult for you. If you deposit such an amount of cash in bank, IT dept will become suspicous.

Market rate is always higher than the ready reckoner rate on which stamp duty is calculated.

This is the reason why they have brought in 1% TDS on sale of property over Rs. 50 lacs to curb this practice.

 

If you do this type of transaction, these are illegal. If you receive the same by cheque, you will have to answer about source of extra income. You will be liable to pay penalties for avoidance of income tax. As well as you will also have to face concequences for false declaration and avoidance of stamp duty etc.