Balck money into white money

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2013 If a assesee has sold land for Rs.5000000/- but the rate as per Government or Registery is only Rs. 3000000/-.

Will he pay tax on Rs.3000000/-
How he can make Rs. 2000000/- (black money) into white money ( show in books).
What are the sources of investment and their respective treatment in books.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 August 2013 It depends on the amount shown in the sale deed if you have shown 50 then you have to pay tax on 50 if you have sold for 50 and shown 30 then 20 will be black money and no one can help you in converting this black money provided you declare this as your regular income.

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2013 then what is the use or where we can invest this black money.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2013 if we give this money to relative & take Gift from the relative in cash