Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Need expertise

Save Share

This query is : Resolved

Lloyd (Querist)

07 May 2015 hi. I have borrowed hand loans worth 1 cr , @ high rate of interest that summed up to 1.6 cr now. I am selling land and during registration will receive 2cheques of 2.5 cr in 6 month gap. The main issue is the buyer is paying in full white money . How do I repay my hand loans of 1.6 cr. I am ready to pay any income tax . but I have to repay the handloans by cash 1cr at least and more time I take more interest builds up. As far as I heard if I pay tax I can withdraw the money and just pay it off . But some people disagree . FYI this transaction will come under long term cap gains. please give me a solution.

Nikhil Kaushik

Nikhil Kaushik (Expert)

09 May 2015 people rightly disagree as where you withdraw such a huge amount of cash from bank and spend it in manner that cannot be explained, Income-tax department can question the transactions and levy penalties such as repayment of loan in cash (section 269T)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now