No, Builder's logic is not correct. You should register your house at actual transaction value of 1.2 crores.
Please feel free to call/ revert in case you need more clarity.
Sale deed at Guidance Value
I bought an under construction property in Bangalore from Cat A builder in 2013 for 1.2 Cr. Builder gave 1 sale agreement of 60 Lacs and 1 development agreement of another 55 lakhs. Now in 2017 , at time of going for registration , the builder is saying he will give sale deed for 80 lakhs only ( guidance value ) instead of 1.2 Cr. His logic is that Salarpuria already paid service tax and Vat on construction agreement hence only Land value at guidance should be taken for sale deed registration. But it means I paid 1.2 Cr in clean money but my registration deed would be for 80 lakhs. Please confirm if builder's logic of ST ,VAT is correct reason to keep sale deed value at 80 lakhs instead of 1.2 crore.
Asked 6 years ago in Capital Gains Tax
Hi
No. The builder is not correct in holding such statement. Register the property at the actual consideration paid.
Hello,
The builder is not at all correct. The agreement has to be made at the initial agreed and paid value of Rs.1.2Cr only. Make sure that you do not fall under his trap.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Hi,
No, the agreement should be registered at the full value. If you do not register it at full value, then you will not be able to claim higher capital gain when you sell the house.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA