When a property buyer from Veera Desai Road, Andheri West, Mumbai purchased a property in Pune for Rs 6.5 crore in AY 2017-18, he got into trouble with the Income Tax Department. The reason for this trouble is the stamp duty valuation for government tax purposes of this property is Rs 8.85 crore. So the Income Tax Department contended that the buyer paid less money than the stamp duty value and thus is liable to pay tax on the differential amount of Rs 2.35 crore (8.85-6.5).
The buyer responded to the Income Tax Department, saying that while the sub-registrar valued the property at Rs 8.85 crore, only Rs 6.5 crore was actually paid to the seller,as documented in the sale deed. He insisted that if anybody has to be held accountable, it should be the seller for selling the property below the stamp duty valuation.
