Sold a property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2015 Dear sir/mam,

My mom dad both are pensioners, to open a new business we sold a portion of our land for 36,63000 but registry was done for 6 lacs 83 thsnd by second party.

We agreed as they said that if they pay more court fee they have to pay more tax. so we accepted there proposal.

We parked all the amount in our saving bank account and created fds against it. Now my CA is saying that we have done a blunder as IT dept will ask for details of each transaction and we don't have record as cash transactions were done by them.

I'm ready to file IT return but he told that it would be more than 4-5 lacs, which we don't have right now, now how we can get out of this mess?

please help me in this regard really very tensed about all this.

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 November 2015 File return pay taxes as advised by your CA. Obtain loan against FD you will be losing only 2% and pay tax.

Amol S Joglekar

Amol S Joglekar (Expert)
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29 November 2015 what is the market value of the said property at eh time of REGISTRY?
sec 50 C is applicable. Please give the market value

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2015 it was around 12 lacs....

Amol S Joglekar

Amol S Joglekar (Expert)
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29 November 2015 01. Capital gain shall be worked out with 12 lakh.

work out the capital gain. And as rightly suggested by Mr Seetharaman, pay the tax. file the return.

02. You said the land is sold for to open a new business????? What is the position in that? The parked money is invested or not? Or still it is parked in savings bank account?

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2015 Sir,

I created four FDs in two accounts on the name of my father of which two were of 6 lacs and remaining two were of 9 lacs.

Against one FD of 9 lacs I took a overdraft loan with a limit of 8,10,000... When this limit was near to exhaust I deposited 7,20,000 and then 2,30,000 to continue with the limit.

Another FD of mine for Rs. 9 lacs was broken to bear marriage expenses.

The business was set up in 2014-2015 which is not performing well. But the property was sold in 2013-2014 to meet construction expenses and over draft limit was taken even before the sale of property and that 9 lac was raised from different accounts.

Let me give u the break up...

Out of 36,63000... 21 lacs fds were created...and one 9 lac FD was created by brining money together from all accounts to one account...remaining 15 lac 63000 of which 10,50000 was used to pay loan amount of OD account. And rest of the amount was used in construction. i.e. 5 lac 13000. Now there is no money parked in any saving bank account...All has been withdrawn to meet business and marriage expenses.

My father pan account was updated with 4 non compliance details with more than Rs.10 lac transaction.

Now the problem is how to show remaining 30 lac 63000 as property was sold for 6 lacs in white and rest second party gave us in cash.

Now we don't have any extra funds to meet huge tax liability, we are badly trapped into this, please guide us some way so that we can take a sigh of relief.

Thank you.

Amol S Joglekar

Amol S Joglekar (Expert)
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30 November 2015 work out the capital gain with 15 lac as the sale consideration and pay the tax.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 December 2015 As document value is only 6 lacs and money received in cash take the advice of your auditor and pay takes, as you will be receiving notice for deposit of cash in bank account.

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