18 July 2011
sir........i bought a land, the same was registered on my name.......and for consideration i have issued cheque...but the same was not realised ..and payment made in cash but the cash payment was not shown in books...........whether i have to show the land in books ???? what other consequences will arises
18 July 2011
Since you have issued the cheque keep the balance of the amount in the books. Get all land papers transferred in your name otherwise the seller may sale against the said land. I mean get the land transferred in your name on the strength of the purchase deed and debit land and credit bank. The amounting lying in the bank account will appear in reconciliation. Try to get a certificate from the seller that he has received the payment against land and no dues are pending. Show some amount paid in cash as cost of the land.
18 July 2011
You have to show the same in the Books of Accounts because these days all the registries have PAN no. of the assessee. And then AIR is filed by the registrar to the IT Deptt. So the AO can easily trace the land belonging to you.
But if you dont show the same in your books of accounts then the AO can easily say that the same has been bought by you through un accounted income and it will be added to your total income and taxed accordingly.
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