Cash deposited in sb account by way of sale of house
SUBHASH SHARMA
(Querist) 18 December 2019
This query is : Resolved
One of my client Amit has purchased a property in delhi for Rs. 24 Lacs in May 2010 by paying entire amount by account payee cheque to the seller. (In Sales Deed only 4 Lacs was mentioned as per circle rate and stamp duty was paid)
Amit sold this property to other person in Sep 2011 for Rs. 26 Lacs and received entire amount in cash and deposited the same to his bank account, since no short term capital gain arise on the house property. ( In Sale deed, Sale Consideration of Rs. 5.80 is shown.)
Income Tax department raised a demand U/s 69A treating the entire cash deposited as income.
Cash received by way of sales of House property ma be allowed in this case or not.
Raj Kumar Makkad
(Expert) 18 December 2019
There is no remedy against this theft of tax. Your friend is half hearted thief. Had he applied his mind then definitely he would have avoided depositing the sale consideration in the bank.
Sb Karma
(Expert) 19 December 2019
No cash payment allowed
Sankaranarayanan
(Expert) 19 December 2019
You are in trouble now . better to consult a Auditor and act accordingly
Raj Kumar Makkad
(Expert) 19 December 2019
Better to pay outstanding tax and avoid from harsh punishment.
Hemant Agarwal
(Expert) 20 December 2019
1. House purchased for 24 lakhs by cheque. Sale Deed executed for 4 lakhs. Stamp Duty evasion on 20 lakhs. Deed liable to be impounded.
2. House Sold for 26 lakhs by Cash. Sale Deed executed for 5.80 lakhs. AGAIN Stamp Duty evasion on 20.20 lakhs. Deed liable to be impounded.
3. Irrespective of any justification, Entire cash deposit of 26 lakhs would be taxed, plus 300% penalty and interest from 2011 onwards.
4. Was the Sale Deed ever registered. A really bad botched up transaction, apprehensively by a Estate Agent, who is chronic to his Patiala Pegs.
Keep Smiling .... Hemant Agarwal
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malipeddi jaggarao
(Expert) 21 December 2019
It involves two aspects - 1) avoiding stamp duty by registering the deeds for under-value and 2) avoiding income-tax payment. Better you consult a tax consultant who may be in a position to advise with minimum damage.
T. Kalaiselvan, Advocate
(Expert) 28 December 2019
Since he has committed this offence, he has to face the sleuths of income tax accordingly.
He has deposited the amount in bank account too hence he has no escape route too.
Now he can show this income as income from other source and can pay applicable income tax on this amount to avoid more problems.
