Black money in property sale

FACTS GIVEN: "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."

QUERY: What is its legal /accounting implication to me. 

REPLY:  If the consideration shown in the regd, sale deed is Rs 50 lakhs only, even if you declare (in the tax return) that the actual sale price was Rs 70 lakhs, the Assessing Officer is empowered to treat Rs 50 lakhs only as the admitted sale price, and to assess the balance Rs 20 lakhs as 'unexplained income.

Receiving cash of Rs 20,000 or more, as loan/deposit  is an offence under Section 269SS, penal under S. 271D  of the Income Tax Act 1961.

To avoid such complications, you may show Rs 70 lakhs as the sale price in the sale deed also.

The party will give you Ra.20 lakhs in cash only. What will you do with the cash, use it for another black money purchase, deposit it in your bank account, stack it in your safety vault in your bank or just keep it at home and hire an armed guard?

There is a law against giving and accepting considerations in cash. The penalty under Section 271D will be an amount equal to the amount of cash changing hands.