UNDER VALUATION OF PROPERTIES AND INCOME TAX ISSUES ASSOCIATED WITH IT

THE DEPARTMENT OF S & R IN KARNATAKA IS REVISING THE GUIDELINES VALUE OF THE PROPERTIES AND THE BUYERS MUST BE AWARE THAT THE CONSIDERATION AMOUNT PAID OR PAYABLE FOR THE PURCHASE OF PROPERTIES MUST BE THE SAME AS THE GUIDANCE VALUE.  THE INCOME TAX DEPARTMENT HAS MADE IT CLEAR THAT ANY SUCH ACQUISITION IS VALUED AT THE GUIDANCE VALUE AND ACTION WILL BE INITIATED ACCORDINGLY ON THE SAID SECTION, IF THE CONSIDERATION PAID IS LESSER THAN THE GUIDANCE VALUE, THUS THE BUYERS WILL ATTRACT PENAL ACTION FROM THE DEPARTMENT.