Market value less than guideline value

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  1. tarunp

    tarunp New Member


    I have recently purchased a property in Tamil Nadu. It was a unique situation as my purchase price was less than the government mandated guideline value. I was advised to pay the complete stamp duty as per guideline value even though my purchase price was much less than that. I was also advised to mention my actual purchase price on the sale deed which I did.

    My questions are for both me as a buyer what would be my tax implications. I did my duty as a law abiding citizen by paying complete stamp duty to the goverment as per guideline value.

    What would be the implications in terms of Capital Gains for the seller? He agreed to sell the property at a slightly lesser value than the market value which anyways was less than guideline value as he was in dire need for money (distress sale).

    Please advice as the seller claims he is at a loss as he would be assessed as per guideline value and not the transaction value even though it is clearly mentioned in the sale deed.
  2. Yatin Gandhi

    Yatin Gandhi Active Member

    For the purpose of Income Tax - The stamp duty value would be considered as the Sale Price for the seller.

    In the hands of the buyer - the difference between the actual price and the stamp registration price would be considered as the income of the buyer and taxed under head "Income from other sources"

    However, if you think that the actual price is genuinely below the registration price and this is a case of distress sale - you can make a request to your income tax officer who will then ascertain the value of the property.

    For more, kindly refer:
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