Can we take cash on land selling and deposite to my bank

aksharma (Querist) 17 March 2017 This query is : Resolved
I am government employeeI purchased plot in 105000 size 100 square feet in 2010 and want to Sale in rs 135000. Circle rate is rs.2500 /square feet. Asking some questions
1.can I take cash from buyer and deposite to my account.
2..take cash rs. 20000 and remain cheque/draft.
3,. What mode is safe take money from buyer cheque or draft.
4. What's is tax liability in this transaction
5.how can I save tax on this transaction.

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Guest (Expert) 17 March 2017
Cash is prohibited. For other issues, consult some tax consultant.

Rajendra K Goyal (Expert) 17 March 2017
Seems the query is academic. However:

Question:

1.can I take cash from buyer and deposit to my account.

Reply:

Now a days in some states payment has to be taken through cheque / draft. Any amount above the circle rate / registration amount is black money and if proof found from deposit in your account penal provisions would be attracted as per Income Tax Act.

Rajendra K Goyal (Expert) 17 March 2017
Question:

2..take cash rs. 20000 and remain cheque/draft.

Reply:

You can, up to the amount of sale as per sale deed.

Question:

3,. What mode is safe take money from buyer cheque or draft.

Reply:

Draft is safe.

Rajendra K Goyal (Expert) 17 March 2017
Question:

4. What's is tax liability in this transaction

Reply:

Depend on capital gains provisions / discuss with tax consultant.

Question:

5.how can I save tax on this transaction.

Reply:

Discuss with tax consultant to save tax as applicable as per IT Act.

aksharma (Querist) 18 March 2017
Thanks Goyal and Dhingra ji.

Guest (Expert) 18 March 2017
You are welcome.

Adv. Yogen Kakade (Expert) 18 March 2017
You have to pay the registration charges and stamp duty as per the government valuation and not below that. Accepting cash to save tax might create serious problem for you.

ADV-JEEVAN PATIL, MUMBAI (Expert) 18 March 2017
Agree with expert Goyal

Dr J C Vashista (Expert) 20 March 2017
Have you intimated your department regarding purchase of immovable property, which is mandatory?

Similarly sale transaction is also required to be informed to the employer, did you take necessary action?

Taking cash, cheque and/or DD and saving tax on proceeds is subsequent issue, if this is not an academic query. I agree with expert Mr. Rajendra K Goyal, prima facie it is an academic question to be solved by your tutor.

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