When it comes to the sale of immovable property, one of the most critical aspects is determining the full amount paid. This amount is not just significant for the buyer and seller, but also for the government, which levies taxes according to the transaction value. Therefore, it is essential to understand how the judgement on full amount paid impacts the sale of immovable property.
Firstly, it is crucial to note that the full amount paid refers to the entire consideration paid or payable by the buyer to the seller for the transfer of property. This includes the sale price, along with any additional charges such as registration fees, stamp duty, parking charges, etc. The full amount paid is typically mentioned in the agreement of sale, and it is this amount that will be used to calculate taxes and stamp duty charges.
In recent years, there have been several cases where the judgement on full amount paid has been challenged, primarily due to discrepancies between the agreement value and the fair market value of the property. This occurs when the buyer and seller agree to a lower sale price than the market value, to save on taxes and stamp duty charges. However, this practice is illegal and can result in severe legal consequences.
For instance, if the tax authorities find out that the agreement value is lower than the fair market value, they can demand additional taxes and penalties from the buyer and seller. Additionally, if the sale price is undervalued significantly, it can also result in the creation of black money, which is an illegal and unaccounted-for income. This can lead to further legal action and consequences.
To avoid such complications, it is advisable to declare the full amount paid accurately and transparently in the agreement of sale. The buyer and seller should agree on a fair market value and declare the same in the agreement of sale, along with all additional charges. This will help ensure that all parties involved adhere to legal and ethical practices and avoid any legal implications.
In conclusion, the judgement on full amount paid is a crucial aspect of the sale of immovable property. Buyers and sellers must accurately declare the full amount paid, including all additional charges, to avoid legal and financial complications. It is never advisable to undervalue the property to save on taxes and stamp duty charges, as this can lead to severe legal consequences. By adhering to ethical and legal practices, all parties involved can facilitate a smooth and lawful transaction.
