Stamp value for land registration

This won't be good.

Since whole of the consideration is transferred through bank accounts .. it is advisable to register at actual consideration.

How are you planning to transfer remaining 25 lakhs?

Hi,

It is not advisable to register below the actual cost. If you do so, you will loose out on taxes at the time of sale of this land because your cost of acquisition will become lower.

You should register it at actual purchase cost.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hello,

I would suggest getting the land registered at the entire price that you are paying to the seller. In order to avoid paying Long Term capital gains later on.

2. Also keep a note that TDS has to deducted @1% for purchasing an immovable property worth more than 50 Lacs.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

There is no need to register the land below your actual cost of consideration, just to save stamp duty. You already have clean source of money for the purchase of the land. If you decide to sell it later, the cost of land will be the cost as shown in the sale deed. Hence, if you show less in the sale deed now to save stamp duty of about 12%, you will lose the benefit of indexation on such under valuation and also credit for the purchase of land, thus resulting in payment of Long Term Capital Gains tax @ 20.4% on such under valuation. Hence, it is not worthwhile to register the land at less than your actual cost of acquisition.

You need to deduct tax @ 1% of the sale value, when you buy the land from a resident Indian. If you are buying from a Non Resident, the tax will have to be deducted at about 20.6%, applicable to NRIs.

Hi,

It is advisable to register the land by declaring the actual amount of consideration that is being paid by you. This will be your proof for the cost of acquisition and whenever you sell the land, this will be considered to compute your capital gains.

Moreover, since you are paying the entire amount by bank transfer, there is a possibility that the tax officer may question it if the registered value is lower.

Trust this clarifies.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B