Un accounted money

The unaccounted money generally called black money in this connection, will be shown as income from other source and you can pay the income tax as applicable to this amount and reflect the same in the ITR promptly so that you can avoid any penal action by the income tax department.

Thank you very much Kalaiselvan Sir for the valuable info. I wish to share some more info on this for your kind review.

In this deal my friend preferred to pay the tax fully for the total sold price specifying in the deed but the buyer not agreed at all. He was telling about the present guideline value of the plot and argued that we cant make a deal on any higher price of the guideline value. But he offered to transfer the amount to the bank account .... and the buyer feels that this way it is very transparent😊The document writer also in the same way of opinion as the buyer🤔

Now my queries are:

1. Whether there is any rules or norms restricting the price of a property to buy/sell with reference to the guideline value set by the state/central govt. dept/authority 

2. Whether if anyone able to register at any/very higher price above the guideline value, whether It makes from that day itself all other deals of that location MUST Be in the new higher price?

(This is the reason the buyer informed us for not preferring for a higher price)

Anticipating your response Sir.

Thanks

Regards

gk

Guideline, as the very name suggests, is the minimal amount fixed in orderto avoid evasion of stamp duties. There is no norm that prevents the payment of stamp duty based on the real sale price.

But this could be of cascading consequences.

Legal Implications for the Seller Underreporting of Sale Value:

The sale deed reflects ₹2.60 lakh, based on the guideline value. However, ₹30 lakh was actually received, which is significantly higher than the declared amount.

This discrepancy may be flagged as underreporting or concealment of income, especially if the transaction is investigated.

Income Tax Liability:

The seller is liable to pay capital gains tax on the actual consideration received (₹30 lakh), not the guideline value. If the seller fails to declare the full ₹30 lakh, the unreported ₹27.40 lakh may be treated as unaccounted income.

Penalty & Interest:

If discovered, the Income Tax Department may impose: Penalty up to 200% of the tax evaded.

 Interest on the unpaid tax amount.

Scrutiny assessment, which can lead to further investigation of past transactions.

 Criminal Offence? Generally, such cases are treated as civil tax violations, not criminal offences.

However, if there's evidence of deliberate tax evasion or money laundering, it could escalate to criminal proceedings under: Income Tax Act (Section 276C) for willful evasion. Prevention of Money Laundering Act (PMLA) if black money is involved.

How to Resolve or Mitigate the Issue Voluntary Disclosure:

 If the seller hasn't filed returns yet, they can declare the full ₹30 lakh and pay applicable taxes. This proactive approach may reduce penalties and avoid deeper scrutiny.

Revised Return:

If the return was already filed with only ₹2.60 lakh, a revised return can be submitted before the deadline.  Key Takeaway Paying the income tax on the full ₹30 lakh (not just the ₹27.40 lakh difference) and ensuring proper documentation is the safest path forward. It may not erase past discrepancies, but it significantly reduces the risk of criminal charges and heavy penalties.

You may record the entire sale consideration received  whether in cash or by cheque or any other mode of cash transferred as proceeds of sale.

No separate adjustment is needed for the excess over the guideline value, it is simply the transaction value.

The guieline value acts as only a minimum benchmark for taxation and registration and not as a cap.

Sale consideration can always be higher but not lower without tax consequences  

So in the FY 2526, if he us ready to pay the tax for the entire 30L, is it the right best option he can do regardless of the past deal.

As I mentioned earlier he never interested to be a person as a underrepieted on the amount or the gain.

🙏

Consult a local chartered account to get black money converted in white.

Thanks a lot Kalaiselvan Sir, Rama Chary Sir, P. Venu Sir and Dr. Vashista Sir for your valuable inputs in details for the queries I made.

You all are doing an excellent service indeed for the past so many years through this media platform to help and support the ordinary public who are in search of clarifications from this forum. No words to express for the valuable time you spared for us.

with love and respect🌹👌🙏

gk

You are welcome for your appreciations.