In a bid to reduce or evade the stamp duty at the time of registration, the buyers and the sellers of the properties, have not SHOWN the real sale price or consideration in the registered sale deed, but 90% of the buyers have borrowed money or availed institutional finance under HOME LOAN scheme, have falsified or deliberately undervalued the properties during the REGISTRATION PROCESS.
The Reserve Bank of India, being the central bank, governing all the banks in India, has all the details about the SALE AGREEMENT,(based on the sale agreement, the housing loans are sanctioned by the banks) and the SALE DEED. It is very easy to detect the discrepancy or the undervaluation.
STAMP DUTY evasion invites 10 times the penalty of the STAMP DUTY EVADED, while, misrepresenting or concealing the actual consideration will invite CHARGES under several ACTS.
The Income Tax department has detected many such illegal transactions and are investigating too many such cases across the country and it is reported that over 30% of such tax evasion, misrepresentation and tax evasion are all in properties across BANGALORE alone.
Await the Tax Sleuths at your door steps soon for those who have different values in the SALE AGREEMENT and registered the property for LESSER VALUE in the SALE DEED.