Advisory — Defence in Valuation Inquiry by Revenue Officer

What This Service Is

Sometimes, you register a property for less than the official value (known as the "circle rate"). Or, the government office that collects stamp duty (a tax on property transactions) believes you didn't declare the property's true value. When this happens, they start a valuation inquiry under the relevant Stamp Act — the law that details how property taxes are collected. This could lead to demands for more stamp duty, fines, and even issues with tax deducted at source (TDS) under Section 194-IA of the Income Tax Act — the law that explains how TDS applies to certain property payments.

This service helps you, as the property owner, buyer, or seller, understand and respond to these inquiries. We'll give you a clear legal and factual plan to defend your position.

What the Service Entails

First, we'll review your property documents, the registered deed, the notice you received (called a show-cause notice), and the local circle rate information. Second, we will prepare a "Preliminary Defence Analysis." This report will show you the legal reasons to challenge the inquiry, the correct way to value your property under the Stamp Act, and the documents you'll need to support your case. Third, we'll have a 60-minute discussion. We'll go over the analysis and finalize your response plan. Fourth, you'll receive a "Final Strategy Report." This includes a recommended action plan and, if you ask for it, a draft of your response or objection.

Our Specialized Inputs

Valuation inquiries need knowledge of both the Stamp Act rules and how they affect your income tax. For example, Section 56(2)(x) of the Income Tax Act treats an undervalued property sale as a deemed gift, meaning it can be taxed as if you received a gift. Our team at IndiaPropLaw has expertise in both tax and property law. This means your defence will cover both the government's tax department and your income tax concerns at the same time.