Dear Experts
I have been offered Rs.70 Lakhs for my flat out of which only 50 laks is by cheque and 20 lakh by cash. I am prepared to disclose the cash proprtion to IT Department and also to Stamp authorities Immediately after receipt. What is its legal /accounting implication to me. Kindly advise.
MC Sharma
I am to receive the amount. Since the buyer would pay stamp duty on lesser value, i wish to offer the differential stamp duty. Thanks
The buyer wishes to buy your property in a lesser price on paper so that he pays lesser stamp duty. You may refer to RR or ready reckoner for stamp duty to find out the rates of your property. RR rates are usually less than the market value. So if the market value is 70 lacs and RR rate is 45 lacs, then you may prepare a sale deed of 50 lacs, and take 20 lacs in cash from the buyer. The buyer then has to pay stamp duty only on 50 lacs and not 70 lacs. This cash cannot be disclosed anywhere.
What will happen if I declare this cash to Income Tax department as income from 'other sources'and pay the appropriate tax.
Thanks
MC Sharma
What will happen if I declare this cash to Income Tax department as income from 'other sources'and pay the appropriate tax.
Thanks
MC Sharma
Thanks. One more question: Supposing I hand him over to the Department and he receives a notice for not deducting TDS. He would naturally deny that allegation since there is no proof that he paid the cash. And I have already furnished my explanation to which I would hold on stoutly. Do I still have any adverse legal implication? Should I not claim some reward from the department for helping them detect a concealed income?
Yes i think you will have because in actual you have done agreement for rs 70 Lakhs but in papers , done agreement for rs 50 Lakhs only (Stamp duty was also paid on Rs 50 lakhs only instead should be paid on Rs 70 Lakhs)
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