Unaccounted cash

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yashdeepk (Querist)
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21 March 2015 Suppose a person makes registry at dlc value and deposits cash recd over and above registry value in a bank.
can he show the cash credit as sale consideration recd from plot and claim capital gain exemption or is there any other way out.
cash credit appearing in bank: Rs8-10lacs.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 March 2015 Capital gain can't be claimed on cash recd over and above registry value. Tax has to be paid on this treating it as other income.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 March 2015 Capital gain can't be claimed on cash recd over and above registry value. Tax has to be paid on this treating it as other income.

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yashdeepk

yashdeepk (Querist)
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21 March 2015 ven if both parties file affidavits and make agreements to this effect than also?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 March 2015 Yes such things will not serve any purpose.

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
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22 March 2015 revise the value of agreement. pay stamp duty value on the same and then it can be taken for capital gain

S SRINIVASAN

S SRINIVASAN (Expert)
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23 March 2015 If the seller has deposited more sum than the 50C valuation, then he has a chance to avoid section 68 by filing an TP complaint with CIT and also complaint with Registry for undervaluation when the buyers don't give any confirmation of paid amount.Pls see the case law of CIT v. Intezar Ali reported in 2014 TaxPub(DT) 0725 (All-HC) : (2014) 099 DTR 0201
For further queries casrinivasantry@gmail.com

yashdeepk

yashdeepk (Querist)
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24 March 2015 But in the said case opposite party ie buyer can face tax proceedings

yashdeepk

yashdeepk (Querist)
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24 March 2015 Cant we create capital of the parties by preparing balance sheet for last 10 years and than we can file ITR for last 2 years and current AY after march

yashdeepk

yashdeepk (Querist)
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24 March 2015 and show some of the portion as cash recd from selling gold

S SRINIVASAN

S SRINIVASAN (Expert)
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25 March 2015 Department usually not relies on cash flow statement when no balance sheets were not filed for prior years. Can take as Gift from some relatives who have source and to prepare gift deed. Showing as gold sales is welcome; but to look in to the wealth tax issue; can try for marriage gifts or combination of all the above.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 March 2015 I think this forum is to guide the people in right way. If some excess cash has been received over guide line value let them pay taxes due.

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