Needs urgent response

This query is : Resolved

NASIM AKHTAR (Querist)
Follow

12 January 2016 Respectable Experts, One of my friends received a gift of Rs.750000 from his father and he purchased a piece of land by the stated amount in Feb-2014.He is a government employee and pays income tax regularly of his salary income. Now he received a notice from his AO u/s 56(2)(vii)(b) in which he has been asked to furnish the following details:- 1.Purchase Deed 2.Sources of investment 3.Filed Return 4.What amount you paid as income tax. What should he do now?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

14 January 2016 If your friend has purchased piece of land on DLC value mentioned in purchase deed i.e. purchase consideration paid is exactly the same as DLC value determined by stamp value authority in purchase deed or if the difference between the consideration paid and stamp duty valuation of property is not more than Rs. 50000/- than there is no problem. If it is not so than difference between the two is more than Rs. 50,000/- entire difference will be liable to added to total income of friend. Anyway reply to notice is to be furnished by explaining source of investment and copy of income tax return and purchase deed.