Hi All,
I have a question with reqard to the payment to be made for purchase of a house property.
I am planning to buy a property worth 46 lacs, for which 20 lacs would be funded by my father in order to save Capital gains tax as he sold his flat and had Capital gains of 14 lacs. For the remaining amount of 26 lacs i would be going for a home loan.
Now everyone knows that for registeration purpose normally the value of property is shown much less than the market value and closer to municipal value. I had initially planned for showing property in sale deed at 39 lacs so as to get the loan and also to save capital gains tax of my father.
The builder is however telling me to show it at 29 lacs and as payment he has asked me to pay 29 lacs in cheque and remaining amount in cash.
With regard to above please suggest me appropriate way to make the payment. I have the following questions.
1. Can i make the payment in cash and if yes upto what amount. I have all white money earned through proper sources and have been shown in the tax returns filed. Will there be any legal/tax implication for the payment made in cash.
2. What if i show the property at 39 lacs in sale deed. Is there any clause in the Income tax which says that if the property above 30 lacs is purchased that needs to be reported to the Income tax department. What would be the implications for that.
Thanks and Regards
Chandrakishore
CAclubindia
