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Query related to real estate deal.

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Ubed

Content Developer

21 Points Posted on 28 December 2015

Hi, My name is Ubed and i am from Mumbai. I need an information related to my flat transaction. Actually I have purchased a flat in FY 2012, by selling old flat (small one). At that time, the market value as per (Recknor Rate - Govt. rate) was INR 58 Lakh, but I have not registered the agreement because builder didn't had the CC at that time (Till now the building work have not restarted). Now I have to do the flat registration but in these 3 years government has increased the Recknor rate which has increased the flat value to INR 70 Lakh (as per govt. rate). I have two queries related to this. 1. Do I have to pay the Stamp Duty and Registration Fees (Around 7%) as per current market value (70 Lakh), or the original agreement value? 2. Now many people are telling me that I should pay builder an amount of INR 70 Lakh instead of 58 Lakh (Otherwise Income Tax dept. will assume that I have paid INR 12 Lakh as black money and they will TAX me flat 30% on that, which is 4 Lakh. But my point is that, I have purchased the flat in an under construction building and the deal was done 3 years back, so why I should pay the current rate? Which is actually a loss to me or inflated cost mainly because govt. has increased the recknor rate. Could anyone please guide me what should I do? Thank You very much !!! Best Regards, Ubed

Replies (1)

Z

Tax Consultation (US and India)

2348 Points Posted on 29 December 2015

You said

"I have not registered the agreement because builder didn't had the CC"

This is whats troubling me.

What what has been done till now? Like how much payment has been made and its mode?

What people are saying is correct, but there is one exception to that.

Where the date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause.

But this shall apply only where the amount of consideration referred to therein, or a part thereof, has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property.

I beleive that there should be proper agreement to sale on stamp