Personally i will not suggest any cash transaction as it is not required at all. Now the society has applied for conveyance of the property with the local authorities. Modules marked "[mod]" are optin versions based on genuine listings. Special subpixel rendering is employed in order to boost the visible resolution beyond the physical resolution provided by the display element in the browser. Seller will initiate the Name transfer request with Builders once we execute the agreement, so that it will be register in my Name as first Owner. Now while registering can we do it only on the name of my wife.
How to save stamp duty and registration eded is a tricky question. Before discussing the same, lets understand what is stamp duty. According to wikipedia, Stamp Duty is a tax that is levied on documents. At the time of transferring ownership of property i. The Stamp duty and Registration Charges Best forex managed accounts from state to state. Put option deed plotting states offer discount on Stamp Duty e. For the benefit of readers, I am listing down the deer stamp duty charges in various states.
These charges are indicative and may change. Now lets understand how to save stamp duty and Registration charges with the help of following example. Mr A is buying a sq ft flat in Delhi for Rs 1 Cr. Here 1 Cr is Market value of the flat. Now the sale agreement should be executed for total amount i. Circle Rate or Govt Guidance Plottihg is the minimum value at which the property can be registered. In laymen terms Govt Guidance Value or Circle Rate is the market value of property as per State Govt.
It is always lower then the existing market value of property. In this example, Circle Rate or Govt Guidance value is Rs psf therefore according to Govt the Circle Rate or Govt Guidance Value of the property is 65 Lacs whereas actual market value is 1 Cr. Potion is mandatory to include Car Parking charges in Circle Rate or Guidance Value to arrive at final registration value. Total Payout is 4. Total saving on stamp duty and registration charges in this case is equal to 7 Lac — 4. Answer is if poltting seller agree to register property at Guidance Value or Circle Rate then he will save on Capital Gain Tax therefore he will not mind registering property at circle rate or guidance value.
Buyer can sign another agreement with seller which is called Deed of Transfer of Rights DOTOR. Balance transaction swing trading options com forex trading strategy html refresh put option deed plotting Lacs can be shown in DOTOR, which will complete the financial transaction.
I will discuss about DOTOR in more detail llotting my next article. In this case if buyer avail home loan from SBI then SBI will provide maximum loan of This method to save stamp duty is very much legal and you can save good amount of money for your home furnishing :. Hope you liked this post. Latest Video: apologize for not posting the message.
Can you please elobarate any issues in registering a plot with some activity happened on the deex, than registering it as semi finished? LIC is offering a loan even if the plot is registered inspite of some construction activity happened on the land, where as SBI is offering only on semi finished registration document only. If construction activity is going on and you register as a plot then construction activity will be considered as encroachment.
Dear Sir, Very good idea to save on stamp duty and registration charges but what if the deal is for investment purpose only. In case we are selling the same property within three years, if appreciated good enough, diff will be noted as short term capital gain which will attract huge tax. In case it is opption residence purpose there is no harm in registering at govt circle rate.
I have seen in smaller cities like kanpur, plots at outskirts put option deed plotting are still avaiable at almost same rate as circle rate set by govt. Even in case someone can negotaite and do plenty of research he can get a lower price. There is a political compulsion to match circle rate and market rate so that farmers get best rates for their land.
If both sale and purchase registrations are done at Circle rate then capital gain tax loss will be taken care : I agree if purchase registration is at circle rate and sale registration is at market value then it will attract huge capital gain tax. Now the question is SBI mentioned Property should be registered as per the value indicated in the agreement. Please advice what are advantage and disadvantage.
Now It depends how much loan you need. SBI will sanction the loan on Registration value not on agreement value. Its a catch 22 situation. If agreement and Registration value is same i. Depending on your loan requirement, you may take a call. Thanks for your advise Nitin. You need to check who will pay stamp optioon and registration charges. In normal scenario it is borne by the buyer i. Besides this you need to check whether VAT and ST is optipn in your agreement with builder put option deed plotting it is also additional.
This is fantastic thread but i have a question for you. I am looking for a property of market value 1 Crore while Guidance value is 45 L. Seller is OK to just accept Guidance value on Sale Deed. Now my problem is how will private banks issue loan for amount say 70 L if my Sale Agreement shows only 45L. So how is this possible? This also leads to me to ask questions like 2. Will banks validate that Sale deed should be registered with same pricing as what we showed them in Sale Agreement?
Private plottnig consider Sale Agreement Value for Loan eligibility and PSU banks like SBI consider Sale Deed Value. You need not to register Sale Agreement with Registrar but Sale Deed must be registered. You can execute Sale Agreement of 1 Cr and your loan will be approved based on this agreement. You can execute Sale Deed at 45 Lacs. Deef arrangement will solve your problem. You will not execute 2 sale agreements but 1 sale agreement and another sale deed. I have explained this in 1st para.
I will not suggest to execute 2 Sale Agreements of different value as it will put you in legal trouble. No, Banks are not particular on this optiom. Only imp point to note is that Home Loan eligibility is decided based on Sale Deed Value by PSU bank and in case of Pvt Optiion Sale Agreement value is considered for loan eligibility It is not applicable for all. Also in this caseassuming bank gives the check in the name of Selleri assume Seller will be at loss as this whole of money becomes white now via Bank Check 2.
Sale Plottting will be executed on stamp paper of 0. If the Home Loan requirement is 1 Cr than entire money will be in white only. The stamp duty is paid for basic structure i. On 2would that work even for a plot? I am looking for a loan from banks for 60L. Yes, its applicable for plots also. Bank will give you loan on lowest of Sale Agreement value or Sale Deed value. As per my understanding BoB will approve loan based on Sale Deed Value and Axis Bank will consider Sale Agreement Value.
You need to check with banks as they have different criterion depending on project. The products keep changing from time to time. Request you to check with banks regarding the same. Do I need to deduct TDS section since sale deed value is 45 lacs? What is taken into account as consideration value for deducting TDS under the newly introduced section ? Sale agreement or sale deed value? For the purpose of deducting TDS, Total Sale Agreement value will be considered i. Nitin — If my sale agreement is not visible to Register office or Tax bodieswhat enforces us to pay TDS based on Sale Agreement?
What if i chose to pay TDS based on Sale Deed value? Or its not their job to mandate that. Though Sale Agreement is not visible but total transaction value is visible to everyone and TDS is on total transaction value therefore TDS is on Sale Agreement Value if it is higher than Sale Deed Value Sub-Registrar office is not bothered about Put option deed plotting as it is tax deeed of buyer.
TDS is sole responsibility of buyer and should be deposited within 7 days from the end of month in which TDS is deducted therefore TDS dees be deposited after registration if you are receiving payment at the time of registration. Hello Nitin, To share a point: In my case, i have gone for Home Loan with SBI. Total value of of property Apt is 60 lakhs. Registration charges will be applied only to Agreement of sale amount i.
Can you pls clarify out your words are based on older procedures being followed up by PSU or recent updates? Ideally both should be same. Rules are different for under-construction and re-sale property. For under-construction property, disbursement is on total amount as rule says that construction cost is not included in the registration.
Stamp duty is paid only on Agreement to sale lut banks consider construction cost for loan if the buyer has signed agreement to build with builder i. In under-construction property by default sale deed value and sale agreement value are same. Actual sale might be at higher value. Thanks for this wonderful article. I am currently in this Catch 22 condition as I am planning for loan from SBI. Additionally, I need to pay for car park and amenities, for Electric and Water connection, plottkng.
Could you please tell how much loan can I get from SBI? Does it mean that I will be paying more from my pocket in case I go with the SBI loan?? Anyways no bank or HFC will finance 1. I have purchased a Flat at Bangalore which cost me Total 37Lacs and have taken a Loan 25 Lacs from SBI. I will be paying 1 Lac extra put option deed plotting I go through SBI rule, and if I register through guidance value i. For under plottint property, 2 agreements are dded with builder i.
Agreement to Build and Agreement to Sale. Total Value of Property equals to sum value in these agreements. It seems in your case agreement to build is not executed with builder i. In short, you need to break the total cost into 2 parts so that you get loan on total value but the registration should be done as per Agreement to Sale at guidance value.
Please discuss with optikn builder. I would like to say thanks to this wonderful post and very informative, precise and clear details. Also, while we do Stamp Duty and Registration, do we do weneed to show Sale Agreement which has 20Lac mentioned or will the officer ask for Final Sale Deed which will mention entire amount 1Cr Or the Registration office dont look for Agreement or Sale Deed Amounts or they dont even ask for these The sale agreement value will be 1 Cr and sale deed value will be 60 Lacs.
Seller will be taxed on Registration amount i. You can make Deed of Transfer of Rights for the rest amount i. Registrar office is not concerned about Sale Agreement value and will not ask for same. Tell your lawyer to put intelligently in sale deed that you have paid rest 40 lacs for Home furnishing etc. I have completed the registration of my flat in a co-operative hsg society in Pune, in Under amenities the builder has provided us a gymnasium in a flat in the building.
Now the society has applied for conveyance of the property with the local authorities. The authorities are asking the society members to pay stamp duty and registration for the gymnasium. Are common areas liable for stamp duty? No, Society members are not liable to pay put option deed plotting stamp duty on ded area. It is builders fault that he has not declared the Gymnasium in Deeed Plan and evaded stamp duty on same. Any additional stamp duty for the property should be borne by the builder put option deed plotting by society plottint.
The benefit is available for both stamp duty and registeration fees. Though he cannot sell the same but pllotting it is allocated to him therefore he has to legally transfer exclusive car parking rights in your name by mentioning it in sale deed. You should plottjng mention car parking no in sale deed to identify your parking space. My flat cost is 20 lack rs. Sir i am not understanding why this much less amount plottnig are taking. I asked to builder then he replied to me this is under construction so only I asked him no need my photo to take in goverment office??
You may check with builder why he is asking more. Dear Sir the vendor and purchaser have entered into Articles of Agreement in respect of a property certain constructed areathe upt for which is yet to be sanctioned. The Parties entered into another separate Articles of Agreement for additional amenities. Stamp Duty is paid on Agreement for constructed area which is registered. Both the documents are cancelled by the parties by two separate Cancellation Deeds, before the plan could be sanctioned.
Now the Stamp authorities are claiming Stamp Duty on Agreement for additional amenities,which is unregistered. How to convince the authority that the stamp is not required? Stamp duty is paid at the time of registration. As i understand correctly, stamp authorities are not asking for stamp duty on amenities but for vacant piece on which amenities will be build.
If you have a property partially constructed and partially vacant than you cannot register only constructed area. In your case, you have registered constructed area but not paid stamp duty for vacant land. Yes, you can legally register property at 24 Lacs and execute DOTOR for rest amount. No, you can register property at Govt Guidance value.
TDS under section IA has nothing to do with property registration. You need to check with bank. In pug case, it is both i. We are evaluating purchase of an existing flat in Bangalore for 60 lacs. The guidance value for the property is around 32 lacs. The builder is requesting payment of roughly 40 lacs to an assignor, and 20 lacs payable to him the builder.
Are these payments subject to TDS even though I am not paying any single party more than 50 lacs? Secondly, should I be worried that builder wants me to split the payment in this manner i. Finally, at optioon point in the future when i go to sell the flat will the value shown in the DOTOR 60 lacs be used as the cost basis for calculating capital gains,, even though the property was registered for GV of 32 lacs.
Transfer fees to be paid to the builder is normally Rs to Rs per square feet. I am sorry to say this but Builder is fooling both buyer and seller. Irrespective of break up of payment, your put option deed plotting value is more than put option deed plotting Lacs therefore TDS is applicable. Secondly, it is clear in payment receipts for what the payment is being made to the builder.
DOTOR is just a way to save Stamp Duty. Is it dfed different for re-sale of apartments versus property developer selling to the first buyer? Stamp duty Rule is different for under-construction and re-sale property. There is no stamp duty on Agreement to Build. For resale there is no construction cost therefore stamp duty should be paid on total sale consideration. The guidance value which is fair value of property as per Govt therefore in re-sale property, registration can be done at Govt Guidance value also.
In case of Builder allotting some flats to Land Owner Legal Heir towards agreed proceeds, is it necessary to registered those flats also? Yes, Builder allotment to Land owner is in kind in lieu of Land given by Land owner. It is mandatory to register the flat in your name. Dear Sir, I have been reading your excellent posts on property related topics and today I have got plotring query I have selected a land for home construction in Lucknow, agreed price is 81 Lakh.
Circle rate of the land is 35 Lakh. Now the issue is fund management, I have 35 Lakh available and need to take home loan for rest. Kindly answer the following 1. Can I declare correct agreement value to the bank to get 50 Lakh loan and still pay stamp duty on circle rate of 35 Lakh 2. Bank will transfer the money to whose account, mine or the current owner?
I am going with SBI, will they give me loan on circle rate or agreed rate? Answer to your queries 1. SBI will give loan on Sale deed value i. In short you put option deed plotting avail loan from SBI if you are planning to register property at circle metatrader trend line kjorsvik. I am planning to buy a flat in Bangalore the seller has not yet registered the flat. She bought it for 38lakhs during launch in and now I am buying it for 69 as now the flat is ready to occupy.
The guidance value is around 45 lakhs in that area for that flat. The flat has not plottingg registered yet and there are no dede miscellanous fittings in that apartment added yet. As flat is not registered therefore you cannot execute deed of transfer of rights. Yours is a transfer case. In your case, you will be signing tri-party agreement between builder, you and seller where flat will ppotting transferred by current owner in your name.
Hence i end up paying Stamp duty and registration charges only for 60L. Does Govt Registration OfficeRBI or Income Tax has visibility into the Sale agreement and money disclosed in that 1 Crore? I presume RBI do day trading rules apply to options butterfly strategy because banks issued loan based on Sale Agreement.
Above leads to another questiondoes Ppotting needs to pay Capital gains based on Sale Deed 60L or Sale Agreement 1Cr? As you are not hiding any fact from Govt and complete transaction is in white therefore there is no problem. Sale Agreement is not transfer of title. Title is transferred through Sale Deed which is considered for capital gains. He would not like to show rest 40 lacs in white. Income Tax Department and RBI has visibility to total transaction value that is why i put option deed plotting to execute DOTOR and notarize the same.
I have a few questions: 1. How do I find the guidance value of a flat i am planning to buy in Pune 2. The flat I am buying is in resale, but ooption raw, so no woodwork or anything. How do I do a DOTOR on that 3. When I sell it in the future say that I buy it for 1 cr, 80 laks is Sale Deed and 20 is DOTOR. How much will be my cost of the flat for Capital gains, will it be 1 cr or 80 lakhs. Thanks for liking the blog. To answer your queries 1.
It will be in psf. Add another 2 Lac for car parking to it. It is subjective, you can ployting DOTOR 3. One Potting I bought a under construction flat on resale within 3 months of launch of the project and singed an Agreement to sell and got it endorsement from builder. Now my query is what is the stamp duty applicable on this property. Location : Delhi Stamp duty is NOT payable in case property is transferred through the execution of WILL irrespective of the value of the property Hi, I just dede across this enlightening article.
I am buying an under construction plootting in Gujarat for around Rs 25 lakh. Remaining amount cannot be shown against DOTOR. The remaining amount must be charged towards ST, VAT, Amenities, Registration etc which cannot be justified under DOTOR. Guidance value is around 5, psf and selling price is around 4, psf. As per the rules, Property cannot be sold below Govt Guidance Value. Only solution is that you can appeal to Deputy Commissioner Valuation Revenue Department of your respective state under corresponding Stamp Duty Act of your state.
If you will be able to justify that Govt Guidance value is high compared to market value due to XYZ reasons than Deputy Commissioner Valuation may allow you to register the property at lower value. I have veed a flat in Ahmedabad and executed sale agreement which is registered at sub-registrar office.
Due to some disagreement over various issues this deal is cancelled. Can this agreement be cancelled by a single party seller or buyer individually or need to be cancelled jointly, pls brief impact of registration charges. To answer your queries i am assuming that Sale Deed is ceed signed yet. To cancel registered Sale Agreement. You have to execute Deed of Cancellation in Sub-Registrar office on Stamp Paper of Rs There are no other charges.
No, it dwed to be mutual. Both parties should agree to sign Deed of Cancellation. Reg Registration charges, I think you are referring to stamp duty paid for registration of Sale Agreement. The stamp duty paid for Sale Agreement is Non-Refundable. As i mentioned Deed of Cancellation can be executed on Stamp Paper of Rs But now when i will get puf then its value will be around 40 Lakhs. So stamp duty will be charged on 28 laksh or 40 lakhs. We have joint ownership of me and my wife. Now while registering can we do it only on the name of my wife.
What is the rate rightnow in rajasthan for stamp duty and registration. You must have signed 2 agreements with builder i. Agreement to Build and Agreement to Sell. Under construction property is registered at value mentioned in Agreement to Sell. You need plotting check value in Agreement to sell and also what is the current circle rate of the area. The registration value will be higher amount between Agreement to Sell or Circle Rate.
After this you can register property only in her name. Hello Mr Nitin, I have entered into a sale agreement with the builder for Rs 60 lakhs. But I want to register the property on guideline value, which is much less. The property is registered at Sale Agreement value which is normally guidance value. In your case, it seems builder has clubbed the two agreements, possibly property is ready to occupy. Hello Mr Nitin, I do have two agreements. But the Agreement to Sell value is much less than the Agreement to Build value and is also much less than the guidline value.
The builder has agreed to getting the property registered at the guideline value but is getting a letter signed by me saying that I have decided to register the property on guideline value and that they are not responsible if there is any future problem. Plottinng I insist on a DOTOR from the builder as all dees payments are white. As i mentioned you cannot execute DOTOR for ophion construction property. In my opinion, you should go for full value registration to avoid any legal hassle i.
Just to check, Have you signed any agreement with the builder? If yes then these agreements are registered or not. Also you signed these agreements recently back dated or 2 year back. Whenever you will go for registration you have to register property at circle rate even if the booking was done 2 years back at put option deed plotting less than circle rate.
If you accept old dates as payment dates then lut may impose penalty for delayed payment or may cancel plotring booking on account of non-payment. I am sure, he would have arranged back-dated stamp papers. Legally you will not be able to prove that back-dated agreement was signed on current date. The otion deed cannot be registered old circle rate. I am not in agreement with the justification of builder in this regard. Even if property value is lower then circle rate, the stamp value for registration will be considered at current circle rate by the sub-registrar office.
As i have not gone through documents therefore cannot comment why builder is taking this approach or what is the intention behind this move. You can check with builder regarding the same. Hi Nitin, I just came across your blog while looking for assistance online and I find it interesting to see your active support : I am planning to buy a commercial shop in vadodara as a resale old property.
I Want to what all government charges are applicable to me for this deal. Also, should I go ahead for DOTOR since the difference is good in actual value and guidance value because of old property. Thanks for liking the blog. You may go for DOTOR. You need to pay stamp duty and registration charges. The rules related to transfer of commercial property are different for different states. I suggest you to hire a local property lawyer who can help in this transaction.
Thanks Nitin Should I go for posting an advertisement regarding purchase of the property since there is no link in between me and seller. And it should only be in vernacular or English or both? Also how much does it cost for stamp duty and registration in gujarat if a property will be purchased by a female. My apologies but i could not understand why you would like to place advertisement in newspaper. For stamp duty and registration charges, i would request you to visit the sub-registrar office.
They will provide the complete details. Stamp duty charges vary from state to state. Hi Nitin i am looking for an apartment in bangalore. The TDS is applicable on agreement value consideration value. Hi Nitin, I have my flat in out area of Pune-Maharastra. It is coming under rural area. We submitted papers and documents to one lawyer. He took plottong 3 months to tell us what are the charges. The apartment has not yet formed. The building has 8 flats.
The lawyer now says the cost will be Rs. The things seems fishy to me. Any idea put option deed plotting it. You can save stamp duty by executing kption deed or relinquishment deed in favor of your brother. The following conditions should fulfilled 1. Property is not ancestral 2. You are Hindu by religion Stamp duty payable in Gujarat is according to Bombay Stamp Act, as applicable to the State of Gujarat. As per Article 28 of Schedule I of the Act, the stamp duty on gift deed is 3.
A registered agreement to sell was executed. Necessary stamp dulty was pootting on the registered agreement to sell. Now the sellor has received the permission to transfer this flat from DDA. I want a regular sale deed to be executed in my favour. The question is whether full stam duty payable on sale deed is payable by me. Or i can pay only the difference value of stamp payable on sale deed minus best items for station trading eve gwen paid on agreement to sell.
The stamp duty for sale deed pplotting paid by the buyer. If the agreement to sell was duly registered iption you may approach sub-registrar office to adjust the stamp duty paid on agreement to sell from stamp duty to be paid for Sale deed. After the approval from Sub-Registrar you may adjust. But The guidance value is only 32 lakhs, I will make sale deed next week. Can I make sale deed put option deed plotting 32 lakhs? Or If Pt decide to take only 30 lakhs loan from LIC, Can I register at 40 lakhs?
Please guide me to save the registration charges. Thank you Khan 1. You can execute sale deed of 32 lakhs i. This is also possible. You can register plot at any value between guidance value and sale agreement value. Thank you Sir for the quick reply, Appreciated. Whether LIC will agree? Thanks in advance Loan will be approved based on sale agreement value i.
It is common practice in Bangalore. Sale deed value can be less then loan value. You may keep LIC informed about same. I am planning to buy a flat in Pune for 75 lakhs. I have verbally agreed to pay Rs 60 lakhs by cheque and Rs 15 lakhs by cash. The sale agreement will be for Rs 75 Lakhs only I will pay Rs as token advance at the time of agreement but the sale deed will be for Rs 60 Lakhs.
Puf I get the sale agreement registered or is it enough to get it notorised on Rs stamp paper,and finally get the sale deed registered for Rs 60 lakhs You can notarize Sale Agreement or can execute on stamp paper of 0. I will not suggest any cash transaction as it might create problem in future e. In future the buyer may claim 15 lac again as there is no proof put option deed plotting cash transaction.
I mean he may claim that 15 lac payment is pending. Sir, i have recently booked a flat sqft in indore location. You can buy online property insurance on your own by paying just 2k-3k. You inform builder that you will insure property on your own after receiving possession. For home loan process, you may ask for breakup of Rs Once you will share the breakup, i will let u know what all you need to pay. Also you should pay directly to bank not to builder.
Dear Sir, I have purchased the flat in Surat ,Gujarat for a consideration of Rs. I have registered the agreement of sell with subregistrar, Surat. Now I want to cancel the said agreement to sell, what are the fees and penalties to be charged by the registrar You have not mentioned reason for cancellation of Sale Agreement as the process depends on reason for cancellation.
And one more thing is remaining amount how to show? With builder sign 2 agreements i. The property is registered on agreement to sell value and rest amount can be shown in agreement put option deed plotting build. I want to ask our property is under redevelopment and our builder is putting a blame on us that he has gven uss 50 lacs cash and we r nt going wid him gr deed of cancellation an he putting a wrong blame on us he is showing one xeror paper wid our sign an done only notary an he is telling us ths so any suggestion wat we can asking were we can go an verify that these r fake documents he is making against us As i understand, you entered into a redevelopment agreement with builder but now he would like to cancel the same through deed of cancellation.
You have not mentioned on what grounds he is seeking cancellation and also you have not mentioned the content of letter which he is showing to you. Also let me know whether you actually signed this letter or it is forged. Itts abut the flat wich was gven to our builder fr redevelopment. Any notary paper does not have any value.
Also i requested you to share content of this letter and whether you signed it or not. I am planning feed buy a flat at uttarpara municipality area and the approx value of the put option deed plotting inc car parking is 40 lacs. What amount I need to pay for deed duty ded registration fee. Is there any option to reduce the amount.
Please help me on a priority basis. You need to check with Local Sub-registrar office. The stamp duty and registration vary even within same area. Hi Nitin, I bought a flat in Pune location and the market value of the flat is 47L and the circle rate is around 40L. Could you please let me know where i can show the stamp duty and registration amount to get the tax benefit.
As i googledi found the only way to show it is 80c, is it? Is there any other way to show these amount to get its tax benifits? You can claim deduction on stamp duty and registration charges under section 80C for FY in which property is registered. Dear Nitin, Thank you very much, I have a question. I have plottint that once we register the sale agreement at a certain value then sale deed must also be done at same value is that true? In such such case I would be caught up again.
Sale agreement is executed on stamp paper of value equivalent to put option deed plotting. It is not out. Only PSU bank like SBI insist that sale deed and sale agreement value should be same. In private banks like ICICI Bank, Sale Agreement is executed solely for the purpose availing Home Loan. You can register property at lower value i. Dear sir as we ceed already frwded my case tu would like to clarify once more on the issuse.
We had a extra demand frm the builder frm the builder finally he aggred on 10lacs rupess as extra demand. Before signing ths wen we demanded are extra amunt Agreed fr only our flat he convinced us to sign the Mou quietly near the others as the put option deed plotting members should nt demand frm him. Later as ant wen plootting flats were vacceted he started ruining the enitre building structure Note we made extra demand as our parents had paid fr the property to vacceted the earlier resdience who were are relatives but the other members who were staying frm last years had almost nt paid rent ever since the live an the benfit offered to us an them.
Further we were the last onces reaming in the building to vaccet the house and nw the builder approach us and told us the extra ammunt would pe paid on the registratioon day we should nt further delay him and we should sign peaceful surrender off the said property widout writting on the possession letter that the property is surrender fr redevelopment and maid a sign his own drafted possession letter wich we signed an gave him in good faith and got a rent plus a relocation in a neary by area twolacs fifty in cash and Ten lacs as two chq was five lacs each and two lacs fifty thousand s a deposit amunt fr the relocation Note pption named Ten lacs as consideration fr the flat bank security instate On put option deed plotting acceptence of these fifteen lacs rupess an leaving the house he immediately demolished the building in next two days.
We nw started demanding fr the individual agreement fr the flat but he kept on postponing and also started sending us the rent in cash until four mnths. Nw wen we protested insisted to register the aggrement he stop picking our calls and blocked us onn all social networking sites. Ded gradually stopp paying us rent frm the fifth month then we file the RTI and sent him alegal notice through a lawyer but he didnt receive itt.
Ths has been almost one and half years nw that we have nt receive rent yett but have received all RTI papers require. Recently four mnths back he has alleged on us that we have had a transaction of WE would like to guided by you on hw to gett law fully registered fr the said property and ur technical expertise wich will law fully bring the builder on are termsand loop holes of the builder in the above case plss guide uss. Law will go by the written agreement between you and the builder.
Any oral commitment of payment etc cannot be proved in court of law. If you feel the documents are being forged then as per law, it is your responsibility to prove the same i. Dear SirI think there is misunderstanding on ur side regarding thr recipet of chq ,we have recved only two chqs of rupees put option deed plotting lacs each and 2chqs of 1. Thanks fr replying sir. Pit there is no criminal activity sd by put option deed plotting police inspection incharge.
So is itt possible to file a case again the landowner who is supporting builder as he signed in a police station as witness that we have taken 50 lacs frm a builder. For example say if I am selling my property at 3 crores, but the seller insists on doing the registration at the circle rate which is 1 crore. So on paper, the property is 1 crore but the market rate and the transaction is 3 crore.
Now there are two situations: 1. Buyer pays me 1 crore in cheque and 2 crore in cash. Buyer pays me 3 crore in cheque. What would be implications for me and for the buyer in both of the above situations? Can Deeed show entire 3 crore as my capital gains in both the above situations? I want everything in white and want to pay potion, but not finding buyers who wants to pay full white.
I will suggest option 2. Assuming you are going ahead with option 2. If you are holding property for more then 3 years then you can take advantage of indexation benefit and capital gain will be Long term capital gain tax else capital gain will be short term capital gain tax. STCG will be taxed according to your income tax slab. Sale deed charges and lease deed charges for 30 years are same or different in Chhhattisgarh? Hi Nitin very informative article…I have a specific query that needs to be answered urgently: In UP, If I paid stamp feed today on the basis of prevailing market rate, but want to register my property on a later date after circle rate goes up next month.
Will the stamp duty paid today be treated valid at that time? It is applicable as on date of registration. Thanks It depends on agreement between builder and buyer. If nothing is mentioned in the agreement then registration cost will be borne by the ddeed. VAT is payable only for under construction property. If the flat is ready to move in then VAT is not applicable.
There is a legal loophole in this. The VAT is paid by the builder only but builder recover this amount from buyer and buyer sign the agreement to bear this cost. If builder and buyer mutually agree for this that buyer will pay the VAT cost plottihg builder then Supreme court cannot do anything in this regard. If nothing is mentioned regarding VAT in your agreement with builder then builder will bear this cost. I was not aware about this SC verdict on VAT or else I would have surely raised this concern at the time of booking.
VAT is payable by builder so you are not liable to pay VAT. This is a township by Mahindra lifespace in Nagpur, Maharashtra. I hear, Mahindra lifespace seems to have quite a good reputation in markethow legitimate their work is? You have any comment on them? Builder will issue 2 separate receipts for VAT Tax Invoice no and TIN and ST Tax Invoice No and ST registration no details. Mahindra is a good builder.
Hence you are put option deed plotting to pay the MVAT towards the registration along with the Stamp duty and Registration fees. Hope this suuffices your concern. What would be your sincere advise, stand against to pay VAT or just give up and listen what Mahindra dictates? Insist on separate payment receipt for VAT as i suggested earlier. Once you are through with purchase, send deeed legal notice citing Supreme Court Judgement to refund deef amount collected as VAT.
They put option deed plotting put a clause in Sale Agreement that purchaser agrees to VAT and MVAT. And I am objecting and asking to remove this clause. Problem is I have already paid booking amount to Mahindra. I was late to come across your blogs :. Even to the booking amount. Unfortunately if you agree to pay the amount to builder then it is legally binding.
You should insist on separate payment receipts for future reference. I never ever thought that a reputed alert forex day trading system 8 toto like Mahindra is also doing things same as crook local builders. Suppose A bought a property in Rs 1o lacs in the year however that time basis on circle circle rate property cost was 6 lacs. As you mentioned, the way of plotying tax like this: by paying registration and stamp duty only on Guidance value is PURELY LEGALas we give rest of the money by cheque.
Can you please confirm as I would like to purchase resale flat in bangalore and have a similar situation. I pllotting finalised a vacant residential plot in Bangalore under BMRDA Plottkng and have paid the amounts by cheque and in white. The developer has given the option of registering: Is there is any advantage other than saving the registration charges and stamp duty if I optiion for guidance value? Except for stamp duty savings there is no other advantage of registering property at guidance value.
If you sell before 3 years then you will be paying short term capital gain tax as per your income tax slab and if you sell after 3 years then it will be long term capital gain tax and you can by take advantage of indexation. Registration at guidance value will not help to save capital gain tax as total consideration value is Rs If stamp duty is not a concern then it advisable to register property at actual sale value.
One quick question, what if the ploting on which construction happening is lease one say for 99 years? In this case, Stamp duty is applicable, if yes why is it so? Stamp duty is applicable as the stamp duty is paid for the transfer of title of property. The stamp duty for land lease is different. I dwed a few questions regarding the numbers that will be considered for Tax calcualtions, especially the Long put option deed plotting capital gains LTCG tax Say A bought a house and registerd it for 30 lakhs 3 years back.
A is plogting selling plottong to B for 50 lakhs. Now B is registering sale deed only for 40 lakhs. The figure 50 lakhs is present only in a sale agreement document. A does not want to get into any kind of legal issues with the IT depatment, so what would be the correct approach while calculating tax? I never suggest any cash transaction to my readers. If a sale agreement is of 50 lacs plothing entire amount should be paid through cheque.
For calculation of LTCG, 50 lac will be considered as Sale value. Though sale agreement is unregistered but all transactions are recorded by bank which should be justifiable. Nice Article, Kindly confirm the stamp duty percentage if case of registration in name of women as single owner in Ghaziabad, UP. Registration charges are extra. In that is 16 years back We had paid the stamp duty and also have a registration receipt for a property but the document was not registered that time due to the unavailability of the builder and my father was also busy.
Can we register the same document now if the builder is ready to come. We have a sign copy of agreement by the builder on the stamp plottjng. If stamp duty and registration receipt is available the document must be registered. As per existing rules, an agreement should be registered within 4 months. You may approach Sub Registrar office to discuss your case, if Sub-Registrar allow then you can register.
What to do shall i go for the registration of flat without loan approval from SBI bank. It is advisable to get your Home Loan approved first before registration. In normal scenario, property is registered either at the time of possession or when it is nearing completion i. Hi Nitin, To get the home loan approved bank is asking for buider buyer agreement copy for the processing of loan, same has been communicated to builder.
Sumit 2 agreements are signed with builder i. Bank need both documents to process Home Loan. Hi Nitin, Can you give some idea about a gift deed and the rates for the same in West Bengal…. In WB, If gift deed is executed in favor of family member then stamp duty optikn 0. Hello Nitin Sir, Can i get refund of stamp duty and registration fee if agreement to sell got cancelled?
It seems, In your case sale deed was registered therefore stamp duty is utilized. You may recover the loss from seller through civil suit but it will depend on what grounds the sale deed was cancelled. Its Regariding resale flat. Actually we did agreement to sale in last month. Physically 1RK is there but in the blue print 1BHK is present.
Current owner is paying tax is current area 1Rk. Can you please suggest us how to get loan. If you know any finance company name to provide loan even this blue print issue. This stamp duty and reg. Please let me know your thoughts on this. It seems there is major deviation from approved plan therefore availing Home Loan is very difficult. You have not mentioned whether stamp duty and reg charges are paid to govt or not.
If they are paid to registrar office and property is not registered, you can claim the refund. If you have paid the stamp duty and reg to owner and property is not registered then you can claim refund from owner. Hello Sir… Could you put option deed plotting tell me about GRUH finance ltd.? They told me that they will provide me home loan ROI Can i go with GRUH finance? In my opinion, you should approach banks like SBI, Bank of Optiion, ICICI Bank or Axis Bank for Home Loan. I have bought a villa at Rs.
If we go with the guidance value the total villa value would be around Rs. I have seen some people registering only put option deed plotting land and not the built up area, even though they have constructed the villa on the land. Is this practice legal? I am assuming that it is gated community with villa plots. Please let me know who is constructing the villa, builder or buyer. Thank you sir for the response. The builder has constructed the villa.
The construction agreement value is not included in registration therefore if you have signed 2 agreements with builder then it is perfectly fine to register only the land i. In case you have signed only 1 agreement with builder then i will suggest you to register the property at total value in your agreement with the builder i. Yes, I signed only 1 agreement. Is it written somewhere in HUDA guidelines? EDC or External development charges is levied by the developer from the buyer for developing infrastructure within the complex whereas IDC deedd infrastructure development charges is levied by the govt on the developer and developer in turn pass on to the buyer.
Though there is still no clarity whether to include EDC and IDC charges while calculating stamp duty and registration charges. Some builders like OMAXE is not including whereas BPTP is including these charges along with BSP. EDC and IDC can be excluded from stamp duty and registration charges. Dear Nitin, Thanks for the information. Put option deed plotting it mean that there is no clear guideline from Haryana government on the same?
I have bought a flat at Vadodara. We need to do sale agreement of Rs. Can you guide me how much will be the Stamp Duty Fees and Registration for the said amount. Flat is in my name, so no incentive expected. I am buing a property in guwahati, the seller is staying in chennai, my q is thatcan i do the sale agreement in chennaiand than do the registration of the propery in guwahati. And will the seller would be able to get sale permision from guwahatiassam on the put option deed plotting of sale agreement register in chennai.
Dear Sir, My friend purchase one row house in sindudurgh, Maharastra for 35 lacs market value. He paid stamp and registration duty only on 30 lacs. One week later his neighbour purchase next to him for 35 lacs same carpet and build up area as per my friend and all payment he made by cheque. Even he paid stamp and registration duty only on 35 lacs. My question is, Their will be any problem for my friend or the builder? Recently stamp duty and registration charges are revised in UP.
The stamp put option deed plotting vary from state to state and also differ if gift deed is executed between blood relation. You may approach sub-registrar office to find out exact stamp duty applicable in your case. Dear Nitin, Can you please answer a few of my queries. Do I need to register only for value in sale agreement 28 lakhs? If yes, then is there any way to save this ingenuine capital gain tax?
Just to add into above question, the apartment bought is in Bangalore, area comes under BBMP. If answer to Q1 is yes, then, Is all the registration and stamp duty only on sale agreement? Or is there anything to be paid on construction agreement also apart from VAT and service tax? You can register at full value also 2. Cost incurred on construction will also be eligible for tax exemption under Section 54 of the Income Tax Act therefore your STCG will be Zero.
NA Hi Nitin, I have a villa under construction and have applied for a home loan from HDFC. I have paid processing fees and am getting ready for the first disbursement. HDFC now says that Stamp Duty is payable as per the Karnataka Stamp Act at the rate of 0. I had previously taken a home loan from AXIS Bank and they did not ask me for it. It seems you are referring to MODT Memorandum of Deposit of Title. Memorandum of Deposit of Title Deed MODT is an undertaking by the borrower that he has deposited the title documents of the property with the bank at his own wish and will, in order to secure the financing obtained from the plotfing.
Govt levy stamp duty on this document to register the same…Charges vary in Karnataka are 0. Stamp optkon for MODT is borne by the Borrower. Nitin, Is this required for a house under construction? I still have not got the position of the house and the registration is not yet done in my name although the e-stamp of the property has been done at the taluk, HBA signed and a tripatriate agreement.
Is signing a MODT really necessary? Why do other banks not ask for it? On the other hand, if i pay pit duty now will it be adjusted against the stamp duty to be paid at the time of property registration? MODT has no co-relation whether property is under-construction or resale. It relates to kption status of property.
Executing MODT is absolutely necessary as it also safeguard the interests of borrower deev case of any future dispute. All lenders charge for MODT, some smartly club it under processing fees and others like HDFC show transparency and charge separately. Stamp duty towards MODT cannot be adjusted against stamp duty to be paid for property registration. Hi Nitin, we bought a flat in crossing republik in Panscheel.
The builder gave us the registration amount as He said that by paying cash the work will be done in days and if we go with demand draft will take 10 days. Please provide your guidance … I will not suggest cash dealing. You pay through DD. DD should be directly in favor of Sub-Registrar. Also seek payment receipt from builder issued by sub-registrar office against payment of stamp duty and registration charges of property. Can I land in to problems due to this?
TDS is applicable on consideration value to acquire immovable property. Property can be registered at lower guidance value but Put option deed plotting should be deducted on consideration value of property only. You can exclude only Water, Electricity, Maintenance, Service Tax and VAT from total value to arrive at final consideration value. The total consideration value will include charges paid towards amenities.
Hi Nitin, l want to ask you that how I save stamp duty on a purchase of flat….? In Mumbai i had purchased a property last year but had not registered it, rather It is on power of attorney. Kindly let me know what are the disadvantages. I am currently going to sell it to another party, will I need to get it registered first? As per ruling of Honorable Supreme Court of India, any property transaction executed through power of attorney is null and void therefore in layman terms you are not the owner of property 2.
You need to register in your name first. Thanks Nitin for your response. Further, do I need to ask the builder from whom Put option deed plotting had purchased to be available for registration process. Right now I am in the middle of the process for transferring of this property to someone else. Kindly suggest me what should I do right now. Dear nitin, Please guide me regarding stamp duty n registration and gift or sucession deed.
My flat is registered on my name and my son is the joint owner. My age is 72 years and I want to transfer my share to my wife. Please guide me into this. You may check the same from local sub-registrar office. A succession deed cannot be executed when a person is alive. Dear nitin, I am buying a new house and selling my old house in pune. I am getting 1 cr 5 lakhs for my house, registering it at 75 lakhs.
I am buying the house at 1 cr 10 lakhs. Registering it at 80 lakhs. Put option deed plotting all things i can do to save tax and stamp duty registration. And what income tax or any other tax i will be liable to pay. Also ppl told me i will have to deposit some money in bank which i can get as refund from income tax. Reg sale of property, to calculate capital gain i need details like date of purchase, date of sale, expenses incurred on sale and purchase, any expenses incurred on improvement etc.
As you are buying a property therefore capital gain from sale can adjusted against investment in another property. I suggest you to go through articles posted by me on my blog as i have covered almost all the points mentioned by you through various posts. In this transaction you will incur a short term capital gain of 8 lakh. This amount will be taxed as per your income tax slab. Sir, thank you for your reply. As per my research on internet, I found some articles where calculation of Capital Gain is calculated as below.
Sir please guide if this is correct or wrong? This calculation is for long term capital gain and is applicable if you hold property for more then 3 years. The flat possession has still not been received by 1st buyer but he has a registration and sales deed. Plus this flat is less than a year old. Estate agent says I can pltoting stamp duty exemption on this property as the buyer is agreeing to forgo it. What are the things I should consider here. The overall flat fixed cost is 74 lacs approx and stamp duty lption approx 3.
Thanks Agent is misleading you. Stamp duty exemption is not possible, its another case that seller will bear this cost. Also please check why the seller has not taken possession for 1 year. I have doubts on title of property. Thanks for the tip. What docs I need to verify from seller in this case to ascertain true ownership etc. I have 2 options either to buy from seller or directly from builder. But surely seller is quoting lower price and also service tax and vat is not payable.
Am I correct in my assumption? Also, is property tax payable at this stage? Property tax is payable and you should demand the same. Thanks for the response Nitin, i have a further queryhow will the title of the apartment get transferred if that is not getting sold in the sale deed? I am planning to buy a individual house resale in AP Telangana. It is of sq. So, how can I calculate the registration charges for it. I am planning to buy a resale property in Pune which cost me around 27 lacs, how much stamp duty, registration charges and extra charges I have to pay.
You may check your agreement. In case of SBI, if you register property are circle rate then SBI will approve Home Loan only on based on circle rate whereas Private banks will consider Sale Agreement value. I m going to purchage a second hand i10 car. Kindly highlight pros and cons for both types if any? Club Charges and SWS charges can be excluded 2. Both are perfectly fine. There is no legal hassle if you register at circle rate or at market rate 3. As i mentioned there is no difference between two 4.
If nothing is mentioned in the agreement then you can cancel the deal by terminating the agreement and return ploting advance paid by the plottting. Hello Sir, you have given awwasome information. I am staying in near pune and bought a row house in resale. Seller had bought the property on 30 march, Is there any rule in maharashtra that we need not pay any stamp duty if the privious sale agreement is done put option deed plotting plottimg of 1year.
Seller put option deed plotting the flat in at 21 Lakhs and its available for possession, Since he wants to sale the same, didnt registerd the property. But current market value of flat is 38 Lakhs and Bank has approved the 30 Lakhs, I need to pay remaining 8 lakhs as down payment via Check. Seller will initiate the Name transfer request with Builders once we execute the agreement, so that it will be register in my Name as first Owner.
Will the builder register the propery as agreement vale 38 Lakhs or actual value 21 lakhs at the time of booking. Is it legal to do like registering the flat at 21 lakhs and the business value of the deal is 38 Lakhs. This is transfer case therefore You should not enter into direct agreement with seller as seller deeed not the owner of property tecnically. In this case, a tri-party agreement will be signed between you, seller and builder. In all probability builder will register at 21 lakhs to save stamp duty 2.
SBI will not provide but private banks will approve loan based on tri-party agreement 3. You need to check with local sub-registrar office as stamp duty vary from area to area 4. It will depend on share of builder and seller in this transaction 5. Yes Dear Nitin, First of all thanks for taking your time out to answer each and every specific query.
I wanted to seek your advice re: a recent transaction I am current doing in Gurgaon. The case is that I have bought a property in resale from a seller who had this property in joint name himself and younger brother. Since he wanted the money to only come to him from this transaction, he got optoon brothers name deleted from the agreement by giving documents to Unitech. I have two main questions: 1. The safeguards I have taken to ensure that I do not have any problem due to joint names, are they enough?
Any other thing which I need to do? Since this pltoting a transfer case, the builder-buyer agreement remains the same and only my name gets endorsed as the owner. So, the question is do I need to pay the stamp duty at the time of possession mon further at circle rate or at 8, psf? Thank-you in advance, Sandeep 1. Secondly, is there any record of payment exchange between 2 borthers for this property.
Thirdly, has unitech issued any written communication to you regarding change in ownership pattern. Stamp duty is applicable on value at which property is registered therefore you can discuss with builder. If unitech agree to register property at circle rate then you need to pay stamp duty on prevailing circle rate. Since, I have not yet bought the property the new builder-buyer agreement was issued to seller who showed me a copy of that.
No, there is no record of payment between the brothers and neither would they be willing to share it with me. Finally, in my last meeting Unitech has said that they will register it at the higher of circle rate or the rate at which property has been sold. So, I think I will have to pay the stamp duty at the higher rate since there is no cash component.
Prima facie everything seems good. To safeguard your interest, i will suggest a Include financial indemnity clause in your llotting deed to be provided by seller. If not feasible to include in sale deed then take separate financial indemnity bond from seller for any claims arising from his family or legal heirs on property b Include the brother of seller as confirming witness in your sale deed c Take both buyer and put option deed plotting agreements in original i.
Thanks, Abhijit Thakare As the property is held for less than 3 years therefore you will incur Short Term Capital Gain Tax. Your Short Term Capital Gain is 13 Lakh and it will be taxed according to your Income Tax Slab. In Put option deed plotting case p,otting did Agreement with Builder on Marchwhic is registerd with all dues like SD and Reg chagrges, so if i consider this Defd as date of Acquisition then 3 years would be March Please let me know what date is conidred as date of Acquisition?
Agreement to Sale Registerd and SD paied or Date of Possesion? Thanks, Abhijit Date of Allotment can be considered as Date of Acquisition. I agree that there are different views but there are enough legal references wherein Date of allottment is declared as Date of Acquisition by IT tribunal and courts. Thanks Nitin, this is really helful… keep doing this good work …there are many people in market who are there to make people full…and because of this form i think lot ot people get right information at Right time …….
Hi Nitin, i have a query in selling a under construction flat. Flat is to be delivered in May I have the sale and construction agreement. It is good to sell before the registration as the charges can be avoided, or, its mandatory to be registered to sell. Does the transfer incur any charges. And the transfer is documented as a tripartite agreement between me, buyer and builder. Am i correct on this and any other things to be of concern in selling a under construction flat. You may sell before registration 2.
Yes, you may check your agreement with builder. It is mentioned in agreement. Normally it is Rs psf 3. Pu Hi Nitin, I am planning to buy a property at 75 Lacs whereas the guideline value is 50 Lacs. Is it legally accepted to register at 50 Lacs when sale value is 75 lacs 2. If legally acceptable, you had advised DOTOR.
Can you elaborate this. Should I give single payment instrument for 75 lacs or two paymwnt instrument for 50 lacs and 25 plottting respectively? In this case can I consider 75 lacs for my capital gains computation as I am buying this property based on the sum received from sale of property 6. Is there any other tax implications for buyer. Please check my put option deed plotting on DOTOR 4. If you are registering at 50 lakhs then 2 cheques of 50 lakhs and 25 lakhs else one cheque of 75 lakhs will do 5.
No, If you are executing DOTOR of 25 lakhs then your cost of acquisition will plottinv 50 lakhs for capital gain calculation. If you wish to consider 75 lakhs to save capital gain then register property at 75 lakhs only which will be cost of acquisition of property. He said that the investor who is the seller is doing this for tax purpose.
Does this sound right?? Currently in EC I see the sellers name Investor appearing as the CL. Please help Its a complex case. AGPA is basically agreement of sale cum GPA. Objective behind AGPA to GPA conversion is not clear. If sellers name is appearing in EC which means property is already registered in his name then what is the role of builder in this whole tranasaction. I suggest you to hire a competant property lawyer who can help in this case.
Personally i will not suggest any cash transaction as it is not required at all. Thank you so much for replying. I as m really obliged. Nitin the builder is facilating the whole process and I put option deed plotting certain he is not gaining anything out of it. Does this make more sense now? My major concern is this GPA and AGPA conversion. How is it going to impact my ownership on the flat?
You can pay your stamp duty and registration charges directly to sub-registrar office. You may inform builder regarding same and tell him that you are not liable for any registration fees refund to seller. I did that already. Regarding AGPA to GPA I was confused myself. So the seller has AGPA in his name so if I buy the flat I would get the sale deed in my name. As the sellers name is appearing in EC therefore property is registered in his name.
You need to check whether he executed seperate sale deed based on AGPA pllotting he has registered AGPA in sub-registrar office. So if the seller has AGPA and when I am buying the flat from him will the registration charges be less as compared to a normal registration. No, it will be same as normal registration charges. It seems he will transfer property through GPA which is illegal. I have decided not to buy that flat. Thank you so much for your help.
Really appreciate it I have Purchased flat in bangalore for 37 lakhs and in Sale agreement it is showing and in Construction agreement it is showing P,otting i am going for registration and the builder has provided sale deed for and the loan has been approved by SBI. It will create any problems for me in future if selling for more than 37 lakhs or home loan interest showing in Returns.
It will not create any problem. Thanks Nitin, You are giving Awesome Responses but final query suppose if i want to sell after some years there is difference in selling price against to the registered value then in that case what we need to do… Thanks NitinNow it gives me clear picture of this. Thanks a lot once again for awesome Replies.
Hi Nitin, What is the stamp duty and registration charges in lucknow. Its a property on society land. Regards Alka If the area is under U. Hi Nitin, I have a put option deed plotting in Pune in my name but on behalf of my brother who has actually made all the payments for the flat. Now I wish to transfer the immovable property in his name and best way to do that seems to be by making a gift deed in his name as this would not pt tax implications for both of us. As far as I know the stamp duty will be applicable on gift deed but not sure about the rate in Pune as well about registration fees, potion that be applicable?
Can you please suggest if gift deed would be the best or would there be any other way or legal mechanism to transfer the property to brothers name in the most cost effective manner. Thanks in advance for your advise on this. Gift deed is only option and as the transfer is to your brother classified as blood relative therefore there will be no tax implications. Secondly if the property is inherited then you need to hire lawyer before exectuing gift deed as the rules and regulations are different for execution of gift deed which is inherited.
I am purchasing a residential property in Thane, Maharashtra. Is it possible to save the stamp duty for under construction flats purchased from the builder? If yes, please let me know how. I would like to know, how can I save stamp duty if my uncle want to give his land to my dad as gift deed? Unfortunately you need plottiny pay stamp duty and registration charges for gift deed execution as per the rates fixed by local state govt.
This is a newly constructed ready for possession apartment and it would be a first time registration on my name. TDS of 65K on the sale amount. If yes, then can I do so without executing a separate DOTOR for the difference of 25 Lacs? I guess plofting DOTOR will not even be applicable in this case as it is a first time sale, but I am not sure. Now, based on TDS it will be clear to the authorities that total sale consideration is 65 Potting.
TDS is on total consideration value and registeration can be done at lower circle rates. Now, I just wanted to double check on this : can I register at lower-circle-rate even without executing a DOTOR or DOTOR is a must if I want to register at circle rate instead of total consideration? It would be violation of stamp law because of the lower stamp duty that is paid on the basis of lower consideration recorded in the document.
Registering authorities on discovery pkt real consideration can impound the document at the stage of registration itself and levy ten times the difference between the stamp plogting payable and the actual stamp duty on recorded consideration. If the reader obliges the purchaser to save his stamp duty by understating the consideration, but reports capital gains and pays tax on the basis of real consideration, there is put option deed plotting only under the stamp law and not under the income-tax law.
As you are not hiding anything from govt or tax authorities therefore you will not face any issue. The news clip shared by you mention that property cannot be registered at value lower then guideline value. Any registration at guideline value or more than guideline value is perfectly fine. In layman terms, according to govt value of your property is 40 lakhs but you are ready lut pay premium of 25 lakhs for property therefore buying it at 65 lakhs.
Till the time you are paying stamp duty on 40 lakhs, Govt will not ira options for high income any objection. Govt is not concerned how much premium you are paying for the property over and above deer lakhs value fixed by govt. In my opinion, if you have too many apprehension on paying stamp duty at guidance value then you may go ahead and register property at consideration value i.
Thank you very much Nitin, for patiently clarifying all my doubts. Plothing was really helpful. You are doing a great job!! Even if you are dealing directly then you may demand builder NOC for sale of flat directly by land owner and make builder as confirming party in your sale deed. It is perfectly legal 2. If it is ready to occupy then you may execute DOTOR towards house furnishing. I am planning for participating in veed e-auction.
Reserved price is 63 lac. But as per circle rate, property cost will be around 30 lac max. I concur with bank. Property can be registered only at the value mentioned in sale certificate. Hello, Sir… I have purchased a house I have already paid 2. If we do registration on Gov. You may visit local sub-registrar office to check the Ready Reckoner or Govt value.
PSU banks like SBI approve Home Loan on Sale deed value but private banks approve Home Loan on sale agreement value instead of sale deed value. If you are availing Home Loan from SBI you need to discuss this point in advance. I have made sale deed to buy a house of 25 laks. But registering this property at 18 laks valuation made by govt. I have to submit document of put option deed plotting laks transction as xerox copy of DRAFT 13 laks to SBI ,because sbi issue only 12 laks loan.
So my question is 1 whether i will involve in fraud case after transaction due register at lower price? It is perfectly fine to register property at govt valuation. Sale deed will be of 18 lakhs therefore you need to make 2 drafts i. The entry of 12 Lakhs Home Loan and 6 Lakhs your contribution will be included in sale deed. Whereas sale agreement will mention dfed value as 25 lakhs. Balance 7 lakhs can be shown optiob token amount or you can make sale agreement with potting of all 3 drafts i.
I have already mentioned that you can execute sale agreement and total consideration value including balance 7 lakhs in reed agreement which can be notarized. You will not face any problem. Dear Sir, Your post is really knowledgable and simple to understand and I really appreciate that. I would like to get an advice from you forex trading caribbean travel the sale of my property. The total deal was for 60 lacs market value for which I paid 10 lacs through cheque and 50 lacs I got loan from LIC.
Hence, all the transaction was done in white and there was no cash amount involved. However, the property was registered sale deed for 20 lacs according to the guidance value. Now, my question is if I sell the property for 75 lacs will my LTCG for income tax will be put option deed plotting as 1. For Long Term Capital Gain you need to consider higher of 2 values i.
Secondly since you are selling after ployting months therefore you can also exclude any improvement cost incurred during last 4 years and can adjust indexation benefit on this improvement cost. Thanks for your reply. So just to confirm once more, there is nothing wrong in terms of taxation while considering the actual purchase price of 60 lacs for calculating LTCG even if the property is registered at the time of sale deed for 20 lacs?
I would like to know about co-ownership. What are the advantages and disadvantages of adding a co-owner in a property. Advantages and dis-advantages depends on who is the co-owner i. At macro level, you should not include anyone as co-owner till that individual is pooling an amount proportionate to ownership in the property. I am buying a property at pkt I have a preapproved loan of My anual salary is 4.
If i register the potting jointly, adding my wife as a co-owner what are the benefits and pit fall in it. Can plottting please explain? Only benefit is that your wife can also claim Income Tax Benefit if is joint owner and co-borrower. If income tax benefit is not a concern then i will not suggest co-ownership. I cannot elaborate pit falls on public forum. Dear sir, i want to know that if i buy a property on loan and rent it to some another person for some time.
As the property is let out therefore you can claim loss from let out property by declaring actual rent received. As the Sale agreement can show my full value and the sale deed will give me the Gov Valuation of flat, and reaming amount can i show in DOTOR? If i do like that will it effect to Loan? As applied in LIC HFL and got Loan Approved Letter, So is the Loan value is depend on Sale agreement for LIC HFL? For under construction flat, ded is not feasible.
DOTOR is applicable for resale properties. If you have signed 2 agreements with the builder i. You are right, LICHFL will consider Sale Agreement value for Home Loan Hi!! I am planning to buy a flat worth 55 lacs in pune in which 5 lacs is infrastructure cost. The builder considered infra 5 lacs also while calculating in stamp duty, service tax, vat. I am planning to go for SBI home loan.
You need to clarify exact put option deed plotting of Infrastructure cost with builder though it is loosely defined as charges towards amenities as mentioned in the project brochure. Depending on definition of infrastructure cost, we can take a call whether you are liable to pay VAT or ST on this component or not. In my opinion, stamp duty is not payable on Infrastructure cost and builder can avoid.
You can register property on sale agreement value provided it is more than govt ready reckoner value. I have an doubt reg guidance value and market value implication in long term. Let me first tell you about my scenario. Market value for my property is 50put option deed plotting am paying the same amount 2. What will be opiton benefit to the builder if i go for guidance value Is there any way in which i optoin go registration as per guidance value and also save the tax implication if applicable on long term sale.
If you buy any property at market value say 50 lakhs and register at guidance value then for all tax related matters i. As i mentioned, Market Value will be considered for any tax related calculations. HI Nitin, I purchased a flat in PUne, maharashtra, in June Optlon got possesion in Oct and society has formed in April Now builder is saying to do the sales deed. My doubt is, wheather I have to pay extra for it? You have not mentioned whether you paid stamp duty to Govt i. Sub-Registrar or to the builder.
If you paid stamp duty to builder and you have payment receeipt then you need not to pay any stamp duty now as builder will pay on your behalf to Govt. In 2nd scenario, if you paid stamp duty to Govt then also you can adjust the stamp duty already paid against sale deed and can pay balance amount if any at the time of registeration of out deed. Dear sir, I put option deed plotting planned to put option deed plotting a flat in pune I have got pre approval from SBI in which my wife is applicant and i am co-applicant.
I have planned to best forex trading guides restaurant the property in my wifes name which she is holding after marriage and she is having aadhar card for the same. But now builder is asking me the name and pancard number of the person to put it in a challan but my wife is having pan card showing her name before marriage. I want to know can we put two names in the stamp duty and registration challan so that it includes my name and my pan card number and opttion wifes name after marriage.
So that i will pay the stamp derd through my pan number. Is it Mandatory to do an agreement only in the name of a person who pays the stampduty? I will not suggest the arrangement suggested by you. Legally, owners name should appear in all documents and payment should be made by owner only. The best solution is, if you have marriage certificate then you may apply for new PAN for your wife with her new name after marriage.
Based on new PAN, open a new plotring account and then make all payments from this put option deed plotting. You will receive new PAN in days time and bank account can be opened same day. I am buying a plot in Punjab Zirakhpur. The total cost of the plot is 36L out of which is 28L loan from SBI. Is there any concessions for PH?
If yes how much? It is fixed and for any concession for specific category, you need to check with local sub-registrar office. I just did a registration few days back. I think stamp duty in Punjab pkotting the costliest in India. Also, registered the flat inwhich cost me about 5 lakhs then. The project is very slow now, but the builder is giving me an option to change to another project nearby which is finishing soon. In this case, can I swap the registration money etc paid to the second one, if I choose to swap?
Thanks RB Any Govt duty or taxes paid cannot be transferred from one property to another i. VAT, ST, Stamp Duty or Registration Charges. Amount paid to builder can be transferred, if builder agrees for same. Hi Nitin, Quick question, if we want to transfer resi property under gift deed in Gujarat what put option deed plotting be total expense would be including govt.
Is there is any lawyer or other fees payable? Thanks Ren For gift deed following conditions should fulfilled 1. You are Hindu by religion Stamp duty will depend who is gifting residential property to whom i. Stamp duty payable in Gujarat is according to Bombay Stamp Act, as applicable to the State of Gujarat. So if we do sale did as per Gujarat Govt. Please advise thanks Ren Stamp duty will depend whether you execute Gift deed or regular transfer as i explained in my previous comment.
You may register at Govt valuation or FULL value, its your choice. I am buying a Builder floor apartment from a company which built the apartment complex. They have not registered the apartment and now they are selling it off. The purchase value is for 80 lakhs. I want to register the property at the guidance value which is like 45 lakhs. I want to know which documents should be marked with the purchase value and which documents should be marked with guidance value.
Also is there going to be any problems for either me or the company if I register at the guidance value. Sale agreement will be at purchase value and Sale deed will be executed at guidance value. Take payment receipts for purchase value. Rest all documents does not mention consideration value. You may register at guidance value but since you are buying from a company therefore get all documents verified from lawyer.
I just purchased a apartment in Indirapuram Ghaziabad. The case was a allotment transfer case, a all white deal with i purchasing the property under Bank Mortgage. All the Transfer procedures have been done. Sale agreement was done for 1 cr. Now Builder at time of possesion told me that Consideration amount of the property is 60 lac i. Amount at which they had alloted to first allotte from whom i had purchased. So registering authority told me that Stamp duty that i had to pay is either on consideration amount or circle rate whichever is higher in my case 80 Lacs But Bank is asking stamp duty on full 1 cr feed.
But registration authority say i cannot pay more stamp duty then circle rate. My understanding is that User has to pay minimum stamp duty to get property registered. Why should they have objection in receiving more money Your understanding is correct. A property cannot be registerated at value less than circle rate but you are free p,otting register at circle rate or higher value. Actually Advocate who is doing registry is appointed by builder and he is saying this.
Can you point out if it is written somewhere in UP Stamp act Before I share my concern I would like to thank you for your selflessness effort in creating awareness among general people on various fields. Your blogs are too informative and always read it whenever I get free time. Keep up the good work Now my concern is that I had purchased a iption in South Bangalore exactly a put option deed plotting back and am expecting to get the possession in next 2 to 3 months.
Earlier I was planning to go for registration after possession itself because of obvious reasons. Builder has confirmed as he will be registering the property at prevailing circle rate. Also I cannot claim post possession home load interest benefit for next five years because my yearly interest will be well above the 2. I heard in Delhi and Mumbaiit has already happened. Now if it happens in Bangalore also in next 2 to 3 months, I will not just end up paying more for my registration but also loose tax rebate.
Plotring keeping all above points in mind, I wanted to go for registration before actual handover. However before that I need your expert advice on this because I feel as something is missing in my evaluation. There are some important points which we need to taken care before going reed registration, so would appreciate if you can advice on same.
Any interest paid before possession is Pre-EMI interest and can be claimed in 5 equal installments from the FY in which the possession is received. Now the limit of interest deduction will be decided based on status of property. These are just rumours spread by builders and agencts to close the hanging property deals or to ceate sense of urgency as Bangalore is going through rough patch in real estate market.
As of date there is no govt notification in this regard and after notification it will take atleast 6 months to complete this process as govt will invite public opinion etc. It is advisable to register property on completion i. Now since last couple of days am reading alot about increase in guidance value in Bangalore in national newpapers. Now somewhere I read that this hike is only for plots and not applicable for Apartments.
And how can I get the exact information regarding this. I cannot comment on rumors, Chinese whispers and speculations. You may check with sub-registrar office. Hi Nitin Sir, I am purchasing a property Market value is around 70 Lacs through one partnership firm ABC. Current status of the property is as follows. First deed is between Mr. Second deal is between Mr.
For this deed Mr. X has given POA to Mr. Third deed is between Ddeed. Society Share certificate is updated i. Now I have following questions. In second deed POA is used for registration on Rs Stamp paper. So is it OK? While buying property from any partnership firmwhat additional care to be taken? I have seen there is section 29 2 a which says Society will not transfer the share in my name till one year as third deed has happened just 2 months back.
Pl help me Thanks in adavance 1. As you mentioned POA is registered therefore its fine. You just need to check the content of POA whether Mr Y was authorized by Mr X to sell property through POA. A lawyer can help in this regard as i have not seen all documents therefore cannot comment 3. As per Sec 29 2 of Maharashtra Co-operative Society Act, if there is any lock-in period on transfer of shares then any agreement executed put option deed plotting this lock-in period stands null and void.
Though ppotting lawyer might suggest you to take irrevocable POA for defd of shares after lock-in period but legally any agreement during this period is not valid. If society is registered under Maharashtra Co-operative society act then even society by-laws or GBM approved proposal cannot over rule Sec 29 2. In my personal opinion, you should not buy this property ppotting there is lock-in on transfer of share.
I am planning to purchase a resale property in Pune. Society is not yet formed for the same and owner is demanding for NOC amount worth Rs. Is it authenticate and reasonable? Society NOC and any charges associated with it is sellers responsibility. As a buyer you need not to pay anything. That property was build 20 years ago. The builder got permission of 2 flat on each floor for total of four floor. He constructed 4 floor instead of 2 on each floor.
So, how much impact fee will be pay for regularise of construction. Extra build up construction eeed sq. In floor plan, he showed four flat on each floor with approval. May put option deed plotting property be regularise? How to calculate impact fees? You just check whether flat shortlisted by you is approved and legal or it is illegally constructed. If it is as per approved plan then you need not to worry about any other deviation. In case, your flat is illegal then i will not suggest you to buy the same.
Regularization cannot be guaranteed as it depends on decision of state govt or local development authority. You may request the seller to get it regularized before you purchase. It is perfectly legal. You cannot register below Govt valuation. Is plotying a tax that the seller needs to pay for the money that he gets out of DOTOR? If yes, what category does it come under? You can declare net amount i. A by a private finance. He is charging 1,55, as stamp duty and egal charges. I am sure lender is calculating interest as Simple Interest by dividing total interest with no of years and then interest per year with loan amount.
I have explained this method in my following post. Now the project is poltting hold. I want to dissolve the property and invest in other property. Can that registration fee be transferred to the new property registration charges? If registration fees is paid only to builder then you can ask for refund but if it is deposited in sub-registrar office then it is non-refundable and cannot be transferred to new property. Hi Nitin, Can you please help me understand calculation of service tax for buying ready possession home directly from builder in chattisgarh?
Cost of home is 25Lacs. Also what is VAT percentage in chattisgarh? It is very complicated calculation. Cost break up may change slightly from project to project. You can get this break up from builder. Land cost is exempted from both VAT and ST. VAT is applicable only on Material cost The 1st method is bit confusing for buyers therefore most builders calculate as per second method only as builder ddeed not paying this from his optioh.
Hi Nitin, I had bought a under construction ploting in Aug in Pune, registered agreement to sell in oct I got the possession of flat in oct Society is not yet formed and the project is still managed by builder. I would like to know, is there any need of sale deed and registration. What is conveyance deed, will I be required to pay any amount on these in any time in future. As per ruling of supreme court of india, property transfer is legally valid if it is transferred through registered sale deed.
Only difference is that sale deed is executed in case of sale of property whereas conveyance deed is executed in case of gift, exchange, lease, mortgage or any other circumstance. I am trying to sell my apartment in a very old building years oldwhere the ready reckoner value comes to about 31 lakhs. However, nearby buyers are willing to give lakhs only as building is very old and there are less chances of redevelopment in that locality.
Is it legal to sell for below ready reckoner value? Is it going to invite income tax inquiry if I sell below ready reckoner price? Sir I buy stamp on 30 July By stamps, i am assuming you are referring to physical stamps. Value of stamp papers should be equivalent to stamp duty to be paid irrespective when you bought stamp put option deed plotting. As per advice from CA, however, tax has to be still calculated on the basis of the higher amount — Ready Reckoner amount, and not the actual amount received.
In the Form ITR2 also, there are two fields — Actual Amount Received, and Government Assessed Value for Stamp Duty Valuation, and which amount you are using to calculate the tax. Sir, I am thinking of selling my land which is located 82KM from Chennai and registered under local Panchyat office as Agriculture farm Land. We advertised many times and there are no takers at Guideline value selling price.
Can you pl guide me what are the Legal and Tax implication of selling this below the guideline value. My area of land is sqft. I can sell this plot for Max Rs 7. What is the stamp duty and Capital gain tax we have to pay the purchaser and Seller Thanks Unfortunately you cannot sell below guidance value. For p,otting duty, you need to check with local deeed office. Sir, Thank you for your response. There is significant reduction of Cost of Acquisition and squarely defeats the advice offered on saving on registration costs, especially for those best buy affiliate program commission do no plan on taking the advantage of tax savings with buying new property after selling another owned property.
Is there a way to save on registration per guidance value and still include 33 lacks from DOTOR in the Cost of Acquisition? Thanks in advance for your guidance. Very good query but comparison should be on apple to apple basis. In your query, you are assuming that at the time of purchase property will be registered at Guidance value but at the time of sale, you will register at market value.
In this scenario there will always be anomaly. Hi Sir, I am buying a residential plot SQFT from a builder at a rate of per SQFT. I would like to know if there would be any legal implications on me if I pay the stamp duty and registration charges at per SQFT rate. I also spoke with bank today and they said that they would provide two DD, one for the portion that would cover the registration part i.
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