• Property registration with market value vs guidance value

Hi team,

Im NRI and all my money white whats are all the advantages and disadvantages registering with guidance value what are all the expected future implication on this.
Asked 5 years ago in Property Law
Religion: Hindu

First answer received in 30 minutes.

Lawyers are available now to answer your questions.

18 Answers

See since you are paying complete amount in white you should register same at sale amount , in case you are registering at guidance value it shall be evading the stamp duty on same objection can be there also you will get tax benifit only on value written in the deed.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

IN INDIA
1. Stamp Duty: as per ready reckoner values released by Tahsil /IGR office

2. Registration Fees: as per calculations @ 1.5% .OR. maximum 30,000/-

3. Any immovable property has to compulsorily follow above.

4. However, IF "market" valuation is above "ready reckoner value" in agreement, THEN higher Stamp Duty is applicable.

5. IF less Stamp Duty is paid for any reason, THEN balance Stamp Duty (with penalty) can be paid by adjudication process at Registration office,

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Stamp duty is levied on sale consideration mentioned in sale deed 

 

it should not be at rate lower than circle rate or guidance value 

 

if it is done at guidance value you would not receive any notice for evasion of stamp duty 

Ajay Sethi
Advocate, Mumbai
96830 Answers
7812 Consultations

If you intend to buy an immovable property in India, being a NRI you may have to pay the entire sale consideration amount by white alone, you cannot pay anything in black.

What are the disadvantages do you anticipate by this act?

You are desirous of buying an immovable asset on your name out of your own money and this purchase is a legally recognised transaction which will confer you the clear and marketable title to the property by virtue of the registered sale deed on your name, what else is the advantage do you expect out of this purchase?

.You can throw some more light to your question so that more proper opinion can be rendered.

T Kalaiselvan
Advocate, Vellore
87030 Answers
2337 Consultations

You have to register it as per ready reckoner value as per the sub registrar. It's the best

Prashant Nayak
Advocate, Mumbai
32441 Answers
199 Consultations

1. You shall have to pay for the stamp duty while registering  your sale deed based on the prevailing circle rate  shown at your Registrar's office.

 

2. If you show less amount towards consideration paid than the circle rate, the difference will be considered as your earning/profit and after some time the I.Tax department will demand I.Tax on the said profit/gain notionally made by you as per the appropriate rate..

Krishna Kishore Ganguly
Advocate, Kolkata
27453 Answers
726 Consultations

No implications, to reduce stamp duty low value shows as sale price. 

But when you paying full in white than show actual value to avoide duty evasion dispute in future.

Yogendra Singh Rajawat
Advocate, Jaipur
22989 Answers
31 Consultations

1. Advantage of registration on guidance value is that you can save stamp duty.

2. And Disadvantage for registration on guidance value is that you may have to pay more long term capital gain tax when you sell the property.

3. Other disadvantage is that you can come under scrutiny of tax department if some other property in same area have been registered on higher price. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

The guidance value is the minimum rate at which a property can be registered on its sale. In some States it is called circle rate. 

Mohammed Mujeeb
Advocate, Hyderabad
19306 Answers
32 Consultations

Hi My client

Advantages

  1. Saving in Stamp duty 

Disadvantage

1. No specific disanvantage unless  short fall of White money balance

2. If any property registered more value than you in same period in same area.you have to pay stamp duty for deficit 

 

P. Gnanam
Advocate, Ambattur
18 Answers

POA continues until it is revoked or till lifetime of principal 

 

2) special POA  gets revoked on its own as soon as the specific transaction for which it was executed is completed.

 

3) you can execute sale deed  in your father favour 

 

4) you can advance loan to father to buy property 

 

5) it would be regarded as father property 

Ajay Sethi
Advocate, Mumbai
96830 Answers
7812 Consultations

No it's will be your fathers plot. Taxation also father will take care. 

Prashant Nayak
Advocate, Mumbai
32441 Answers
199 Consultations

Who said that the power of attorney deed will be valid for one more month only.

In my opinion there is no time fixed in the GPA deed, somebody has misguided you about this.

The GPA will be revoked only on some specific events, hence don't b confused about it.

Your father can get the property registered on your name using this power of attorney itself.

 

 

T Kalaiselvan
Advocate, Vellore
87030 Answers
2337 Consultations

 If you create a general power of attorney and set no date for which it will expire, it will last until you die or become incapacitated.

Mohammed Mujeeb
Advocate, Hyderabad
19306 Answers
32 Consultations

See the Power of attorney will remain valid as per clause mentioned in same.

Further if father purchase in his name from your amount then it shall be treated as resident property.

You can register on father's name though father will absolute owner as you have to show amount is gifted to father and he then by himself purchased the property and he can transfer same on his own wish.

You can extend POA can issue a new power of attorney.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

1. Execute a "irrevocable power of attorney" in favor of father and mention all the strategic points and that POA shall remain valid till revoked by you.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

POA registerd out India need to re registered in India within 4 months. 

How come registered POA in India expire in a month ? You have wrong information.

Buying in the name of father will consider his property and to claim your ownership, court declaration will require.

Yogendra Singh Rajawat
Advocate, Jaipur
22989 Answers
31 Consultations

1. It is not clear as to what will stay valid for only a month. 

 

2. The POA registered POA in favour of your father which will stay valid till you withdraw it.

 

3. Actually before registering property Query Sheet is obtained from the office of the Registrar wherein the amount to be paid towards stamp duty based on the circle rate of the property is mentioned. the said query sheet issued by the office of the registrar is valid for one month only and thereafter you shall have to again file the application enquiring about the stamp duty which will be required for registering the sale deed in connection with the property to be purchased by you.

 

4. Being NRI, you enjoy I.Tax and I find no reason why you shall not purchase the said property in your name wherein your POA holder will sign the sale deed for and on your behalf. 

Krishna Kishore Ganguly
Advocate, Kolkata
27453 Answers
726 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer