If the document value is less than Stamp Duty Value, difference amount will be treated as part of Sale Consideration
No part of the Sale Consideration can be received in cash ( except for a small amount of Rs 20,000)
Development Agreement cum GPA attracts Capital Gains Tax in the hands of the Landowner at the time of completion of building and getting an occupancy certificate only if the Agreement is entered into on or after 01/04/2017. Otherwise, Capital Gain accrues at the time of Registration of Development Agreement itself.
For Document Values of Rs 50 Lakhs and above, Tax has to be deducted at source
- At 1 % if the seller is a Resident
Tax has to be deducted at 20.60 % if the seller is a Non-resident & the sale results in long term gains, irrespective of the value of sale consideration ( Less than Rs 50 Lakhs also )
Donot register documents for less than Stamp Duty Value. If the Document value is less than Stamp Duty Value, difference amount would be treated as your income
Income Tax department has an immediate access to all registered documents
Please talk to your Income Tax consultant well before registration of any document.