delay property registry? Don’t let a higher circle rate trap you in extra taxes!
When there’s a gap of years between your property agreement and the actual registry, the stamp duty value (circle rate) often shoots up.
The Income Tax Department might try to tax you on that difference under Section 56(2)(x).
But here is the legal loophole that can save you lakhs:
The Proviso to Sec 56(2)(x).
If you pay a portion of your property advance via banking channels (NEFT/RTGS/Cheque) on or before the agreement date, the IT Department MUST consider the circle rate of the agreement date, not the registry date!
Key Takeaway:
Always execute a registered agreement and keep a crystal-clear banking trail of your advance payments.
So you don’t forget this rule during your next property deal.