in Property Law
Asked December 20, 2015

Payment made by Cash for Plot of Land_ Provisions of Law as in Dec 2012

  • 1 Answer

Dear Sir, A Pvt Real Estate Developer asked for 50-50 : Cash-Cheque Payment for Plot of land costing Rs 20,80,500/- purchased and Registered in Tehsil in Dec 2012. Stamp Duty was therefore paid on half the amount only ie on moneys paid by Cheque. I paid as I had no problem justifying the source of my money. Shall be grateful if you could kindly indicate the Penalties, if any, under Income Tax Act or Indian Stamp Duty Act, or any other Act. best regards A Sinha

Answer 1

Default avatar
Ayushi Singhal
Any person who intents to defraud the government and with such intention writes the wrong amount of consideration in the sale deed, she/he may be liable to pay a penalty upto Rupees 5,000 under Section 64 of the Indian Stamp Act, 1899. The person alleging so however has to prove the intention to defraud on part of the defendant. Some other states like Madhya Pradesh have enacted more stringent provisions for the purposes of ensuring that the sale deed is not undervalued, however the Indian Stamp Act lacks such a provision presently.
Agree Comment 0 Agrees about 6 years ago

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