Cash received by sale of property.

This query is : Resolved

mehak (Querist)
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14 January 2016 Sometimes, sale document is made at the Circle Rate value. The difference of actual sale value and circle rate is paid in cash. It is unaccounted amount. Is there any way so that this amount could be shown in Income tax return ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 January 2016 It can not be shown in the Income Tax Return. It will create problem to both the seller and buyer.
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CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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14 January 2016 You can offer the same as "other income" by paying tax on it. In such case you can deposit the same in a bank account as well so as to make it formal income.

Note:
1. When you are offering as "other income" you need not correlate it with transfer of property or give explanation for the same.
2. If found such credits by IT Dept. (i.e. not from your own disclosure in IT Return), the Dept. treat it as unexplained credits / money / investment / expenditure, etc., which has been deemed as income under section 68, 69, 69A, 69B, 69C or 69D, and are chargeable @ 30% flat (plus surcharge and cess as applicable). [Sec. 115BBE];

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