Property Registration based in Guideline value

Namaskaram,

A clarification is requested on the following ;

1. In plot selling, sale deed would be registered for Guideline value as prescribed by TN Govt.

2. Sale agreement would be entered for the entire amount. Not proposed to be regsisterd.

3. Seller will voluntarily disclose the entire sale consideration amount as mentioned in the Sale agreement to Income-Tax department. Then, he / she will either pay necessary tax on long term capital gain or invest the capital gains in another property as stipulated in the prevailing Income-Tax Act.

4. Can TDS 1% calculated based on Sale agreement value be deducted and remitted by buyer as per the provisions of Income-Tax Act ?

5. If any buyer looking for loan, Sale Deed will have higher sale amount over and above the Guideline value depending on loan requirement.

Is this method fine ? Thanks 🙏🙏

I'll address your queries: Registration of Sale Deed: 1. *Guideline Value*: In Tamil Nadu, the sale deed is typically registered based on the guideline value prescribed by the state government. This value is usually lower than the actual sale consideration. Sale Agreement: 2. *Entire Sale Consideration*: The sale agreement, which is not registered, will reflect the entire sale consideration amount agreed upon by the buyer and seller. Disclosure to Income-Tax Department: 3. *Voluntary Disclosure*: The seller will voluntarily disclose the entire sale consideration amount to the Income-Tax department and pay necessary taxes on long-term capital gains or invest in another property as per the Income-Tax Act. TDS Deduction: 4. *TDS Calculation*: As per the Income-Tax Act, TDS at 1% can be deducted and remitted by the buyer based on the sale agreement value, which reflects the entire sale consideration. Loan Requirements: 5. *Higher Sale Amount*: If a buyer requires a loan, the sale deed can reflect a higher sale amount above the guideline value, depending on the loan requirement. However, this should be done with caution and in compliance with income-tax laws and regulations. Additional considerations: - *Stamp Duty*: Ensure that stamp duty is paid on the higher sale amount reflected in the sale deed. - *Income-Tax Implications*: The seller should consider the income-tax implications of disclosing the entire sale consideration amount and paying taxes accordingly. - *Compliance*: Ensure compliance with all applicable laws, including income-tax laws, stamp duty laws, and registration laws.