Regarding tax on sale of house property

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2017 DEAR SIR,
I WANNA KNOW THAT IF ONE PERSON SALE ONE HOUSE AT RS.35,00,000 ON APRIL 2016, BUT ACCEPT RS 1750000 BY CHEQUE AND BALANCE IN CASH (AND KEEP CASH AT HOME) AND SIGNED ON SALE AGREEMENT MADE FOR RS.1750000 ONLY WHICH IS EQUAL TO VALUE AS PER STAMP DUTY VALUATION, AND NOW IF HE THINK THAT HE SHOWS IN HIS TAX RETURN, SALE CONSIDERATION OF RS.35,00,000 AND READY TO PAY TAX @20% AFTER INDEXING (INDEXED COST OF HOUSE IS ABOUT RS.1100000) THEN WHAT PROBLEMS HE MAY FACE IN FUTURE ? SINCE HE HAS LEGAL DOCUMENT(WRITTEN PROOF) OF RS.1750000 ONLY. HE IS THINKING TO DO SO BECAUSE (1) IN THIS WAY HIS FULL MONEY RS.35 LACS WILL BECOME WHITE MONEY AND (2) HE SOLD HIS HOUSE IN APRIL 2016 AND CASH AMOUNT RS.1750000 WHICH WAS HIS HOME IS NOT BLACK MONEY AS HE SAID, BECAUSE MONEY WILL BE CALLED BLACK IF NOT SHOWN IN RETURN, WHILE THIS IS HIS FIRST RETURN AND HE HAS OPTION TO SHOW IT INTO RETURN, BECAUSE HOUSE WAS SOLD IN PREVIOUS YEAR 2016-17 AND HE MAY FILE RETURN TILL NOW. SHOULD HE GO FOR IT OR SHOULD SHOW SALE VALUE AS PER DOCUMENT i.e. RS.1750000 BECAUSE IF NOTICE WILL COME THEN HOW HE WILL PROVE THAT HOUSE WAS SOLD AT 3550000 AND NOT MORE THAN THIS AMOUNT ??

Expert : Anonymous

Expert : Anonymous (Expert)

19 April 2017 not advisable to show income as per your whims when u dont have document to prrove the same , ito may say it is 50 lacs then how u will proove and the buyer also will be in great trouble as he also has to pay tax on same amount.