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Immovable property purchase

anil jaiswal (student) (112 Points)

23 April 2015

hello there, i want to purchase an immovable property costing 25,00,000, nd i m paying 15,00,000 in cash/chq nd for balance by taking loan, i have not filed income tax return yet, can u plz tell how can i show this amount if i don't hv ITR, what other consequences may be there. thanx in advance for reply to expert.

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(Guest)

You can file belated return (Rs 5000/- penalty may be imposed) for FY 2013-14 and for Fy 2014-15 now. The bank may ask for it to sanction housing loan.

1 Like

anil jaiswal (student) (112 Points)
Replied 24 April 2015

Thanks for ur reply...but my query is that dept may ask me where 15 lacs rs came from ?

CA AJAY KUMAR AGRAWAL (PRACTICE) (813 Points)
Replied 24 April 2015

Definitely I Tax department will ask you about sources of Rs 15 Lacs. May be you lawfully have cash in hand Rs 15 Lacs. You must be having enough income during last so many years to save Rs 15 Lacs in cash. For that you have to prepare Cash Flow statement for last so many years & definietly you must have good income for that saving. Practically it will be much difficult to justify such huge cash in hand. I feel that in case you can prepare all the details, then you can justify 1 - 1.50 lacs cash in hand but any other big amout will be big problem to justify.

Pankaj (Jr. Accountant) (80 Points)
Replied 24 April 2015

Dear Sir,

Avail loan as much as bank ready to give you against immovable property. after taking loan you can make part payment by cash.

this way department will not going to ask you source of income.

anil jaiswal (student) (112 Points)
Replied 02 May 2015

Thank you. I hope dept will not ask me about 10 lacs cash payment

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 05 May 2015

And one more important thing to note while purchasing property is that make sure that you purchase property at value adopted by Registrar popularly known as DLC or floor rate. This is because if consideration paid by you for property purchase is less than the registrar's value by more than Rs. 50,000/- than that difference will be treated as your income under section 56(2)(vii).

anil jaiswal (student) (112 Points)
Replied 29 May 2015

sir whether sec 56(2) will apply on purchasing Agri Land ?

and whether 269ss and 269 T will apply on Agri land, and how to find stamp duty value , can i find it online ?

Z ( ) (2960 Points)
Replied 29 May 2015

S.56(2) Applies if asset is held as a capital asset

And as per S.2(14) capital asset does not include

agricultural land in India, not being land situated

(a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population48a of not less than ten thousand ; or

[(b) in any area within the distance, measured aerially,—

(I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten thousand but not exceeding one lakh; or

(II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or

(III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh.

How to find vale?

There are categorization of the property

Am citing rate of Delhi

https://www.delhi.gov.in/wps/wcm/connect/DoIT_Revenue/revenue/our+services/notification+-+revised+circle+rates+in+delhi+with+effect+from+23-09-2014+-+english

The purpose has not been envisaged under 269SS and 269T

So loan/Deposit for every purpose is covered unless specified

Provided that the provisions of this section(S.269SS) shall not apply to any loan or deposit taken or accepted from, or any loan or deposit taken or accepted by,—

(a) Government ;

(b) any banking company, post office savings bank or co-operative bank ;

(d) any Government company9 as defined in section 617 of the Companies Act, 1956 (1 of 1956) ;

(e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify10 in this behalf in the Official Gazette :

~ in S.269T

[Provided further that nothing contained in this section shall apply to repayment of any loan or deposit taken or accepted from—

(i) Government;

(ii) any banking company, post office savings bank or co-operative bank;

(iii) any corporation established by a Central, State or Provincial Act;

(iv) any Government company16 as defined in section 617 of the Companies Act, 1956 (1 of 1956);

(v) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette.]