Query

Querist : Anonymous (Querist) 04 February 2010 This query is : Resolved
Hello Sir,
A is selling a land(45 years old) to B. Value fixed by the registration dept. 1.5 cr. But actually being sold at 3cr. A is asking for white sum, but B is not ready, since he wants to save on registration charges, which is around 20% (both legal and illegal expenses) of the sum. For 1.5 cr it will be about 30lkh and for 3cr it is about 60lkh. On the other hand A does not wish to take cash (black) due to fear. How cash (black) taken will be converted in to white? Or what should I do? Shall I scrape the deal? Thanks

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A V Vishal (Expert) 04 February 2010
Scrap the deal

Parveen Kr. Aggarwal (Expert) 04 February 2010
Yes. Scrap the deal.

soumitra basu (Expert) 04 February 2010
Do not scrap the deal. Complete the deal for Rs. 1.50 Crore and pay tax thereon. For the rest of money there is lot of tax planning schdule. Adopt that.

Jithendra.H.J (Expert) 04 February 2010
I agree with Soumitra

barun deka (Expert) 04 February 2010
who are you A or B? if A then scrap it, don't deprive the govt. of registration and stamp duty.... if B, offer in white

Kumar Thadhani (Expert) 06 February 2010
IF the value is fixed by the registering authority for1.5cr. then what is a point to worry as you party a carry on your deal do not scrap itREAD SECT. 50 OF THE INCOME TAX ACT IN RESPECT OD CAPITAL GAINS IN THE CASESS OF LANDS AND BUILDINGS.