Hi Everyone!
(1) Mr. A has sold his residential Flat for a consideration of Rs. 36,00,000/- After the deal was closed, the purchaser insisted to pay Rs. 29,00,000/- by Cheque and Balance Rs. 7,00,000/- in Cash. Mr. A refused to do the same, but to not to let go the deal, Mr. A entered into two separate agreements one for the Flat Sale for Rs. 29,00,000/- and another for sale of all the Furniture and fixture, Elec. equipments etc in the Flat for Rs. 7,00,000/- and he took the complete amount of Rs. 36,00,000/- in Cheque from the purchaser.
Now Mr. A to avoid any tax complications want to declare the complete amount of Rs. 36,00,000/- in his tax returns as Sale Consideration of the Flat. (Any way he has invested the complete sale proceeds to buy another flat so he will not be liable to any tax). Will it be appropriate to do so /or only Rs. 29,00,000/- should be shown as sales consideration. And then what will be the tax treatment of the balance Rs. 7,00,000/-.? ? ? ? ?
(2) An Individual sold a residential property & got Long term Capital Gains of Rs. 22,00,000/- (F.Y 2009-2010). He has invested the said gains in acquiring of new residential under construction Flat & have accordingly paid Rs. 12,00,000/- till date as per W.I.P. The due date of filling returns for F.Y 2009-2010 is nearing but still Rs. 10,00,000/- is uninvested or unpaid.
Instead of depositing the said sum in Capital gains a/c, If the individual pre-pays Rs. 10,00,000/- to the Builder before the due date of filling returns, will the same qualify for deduction u/s 54.??????
CAclubindia
