Difference in the amount mentioned in the sale deed and selling price

Q: One of my friend's want to sell his plot. The buyer prepared a sale deed mentioning Rs 1.40 crores towards the cost of the land (guidance value of that area) where in their negotiated price is Rs 95 lakhs. Moreover the buyer has not mentioned the mode of payment in the deed. Is this legal? Isn't it mandatory to mention the mode of payment in the sale deed? If not what about the balance amount. Will there be any implications on their tax liability?

Hanif Laskar, Bangalore

14th March 2014

Legal in Ahmedabad

property selling

property tax

sale deed

Follow Discussion

Also see discussions for

Ahmedabad Legal Legal in Ahmedabad

Replies (1)

Though the actual sale price of the property you are buying is Rs 95 lakhs. But If the guidance value is Rs 1.40 crores then you have to pay the stamp duty on Rs 1.40 crores only.

The sale deed should be for the amount that has been receieved by you under the sale deed. It is not complusory but generally the mode of payment is reflected in the sale deed. There will be tax implications on the sale being effected by you. For tax calculation you can take advice from your tax consultant.