Income tax on cash given to relatives
This query is : Resolved
10 November 2016
My co-brother sold a house (after 12 years of purchase) for 68 lakhs (received 28 lakhs in cash as agreement is for 40 lakhs). He had purchased the same before 12 year for 18 lakhs. Out of 68 lakhs, he gave 9 lakhs each to wife, son and daugther-in-law in CASH (they are holding the cash still at home in old 500 notes). This activities done in Oct-2016.
Is income tax payable by receivers OR what is need to be done to avoid tax.
Thanks in advance.
Is income tax payable by receivers OR what is need to be done to avoid tax.
Thanks in advance.
10 November 2016
No cash can be accepted exceeding Rs. 20,000 on sale of property. Let each of them deposit the amount in their bank ac as it is less than 10 lacs and pay applicable taxes treating it as income.
10 November 2016
Thanks for your export opinion. To add to query, is capital gain tax is applicable on the sale of property (38 lakhs) after 12 years of purchase (18 lakhs).
10 November 2016
Yes capital gain tax applicable work out the capital gain after deducting the indexed cost. 20% tax payable on the long term capital gain.
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