Urgent query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2014 Dear Experts,

I have a plot which I want to sell and from that money which comes form sell, I want to purchase a agriculture land now I my query is that money it is taxable?

If this plot is parental property Its comes from my father to me as VIRASAT.It is not purchased from anybody it comes my father to me as VIRASAT.

If Its sale value will be apro. 80 Lac to 01 core.

If this plot is not constructed only a boundary wall.

Should I open a separate a/c for this money which i received by Cheque?

This money retain into my account for a short period for 2-3 months till that I m searching a agriculture land?

Should I take Cheques in Small Amount i.g. 10 Cheques of 10,00,000/-?

I don't have a PAN CARD and not I have a taxable income?

Should i take cheques in different names?

can we deposited the cheque in a bank account which is open without PANCARD.
Thanks in advance

Rupesh Jain

Rupesh Jain (Expert)
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14 August 2014 if you have agriculture land in rural area the o capital gain will arise.

if it is plot of land for in urban area then you have to give the LTCG. and claim indexation benefit.

but you are buying the agri. land then you can benefit if you sell and buy agriculture land.

if you sell other land and but residential house then you can get benefit u.s 54F. otherwise you have to pay tax of profit and buy any thing.

you have to take PAN and no requirement of take cheque in diff-2 name.

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2014 Dear Sir,

this plot is in a village but this village comes under Munciple Corporation. But this is a Parental Property comes from Generation to Generation, not Purchased by us.

And if i don,t want to pay tax on it then what options i have

should i take 10 cheque of Rs. 10,00,000/- and deposited in different different accounts.

Also i don't have PAN CARD And Not file ITR because i don't have taxable income

And one more thing is that this plot sale value is aprox. 80 Lakh to 01 Core
I have to deposited this money in my saving account by cheque and further in the time period of 3-4 months i have to pay this money to another party by Cheque to whom i purchased agriculture land. So this money stay in my bank account only for 3-4 months.
Can bank not clear those Cheuqe since i don't gave PAN CARD to my Bank.

Kindly Guide Me

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2014 Dear Sir,

Is it mandatory to gave pan card to bank for deposited this money to bank by cheque and to issued cheque for the same amount.

Should i have to apply for PAN CARD

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Here’s a detailed reply for your urgent queries on **sale of inherited plot, taxation, PAN, and banking formalities**:

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### 1. **Taxability on Sale of Inherited Plot**

* The plot is **parental property inherited (virasat)** from your father.
* Sale of inherited property is **subject to capital gains tax** under the Income Tax Act.
* Since it’s a **plot in an area under Municipal Corporation**, it is treated as **capital asset** (not agricultural land).
* **Long Term Capital Gains (LTCG)** will arise if held for more than 24 months.
* You have to pay tax on **LTCG after indexation**.
* To reduce tax liability, you can invest sale proceeds in:

* Another residential property under **Section 54F** (within 2 years).
* Agricultural land, **only if it qualifies as agricultural land exempt from capital gains** under your state's laws (generally rural agricultural land is exempt but land in municipal limits usually isn't).

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### 2. **Use of Sale Proceeds to Buy Agricultural Land**

* Buying agricultural land from sale proceeds of non-agricultural plot may **not exempt LTCG**.
* Section 54B applies only to agricultural land compulsorily transferred.
* Section 54F is for investment in residential property.
* Confirm if the agricultural land you plan to buy qualifies for exemption — if it is truly agricultural land and **outside municipal limits**.

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### 3. **Banking and PAN Card**

* You **should open a bank account and deposit sale proceeds** (cheque or cash).
* As per **Income Tax Rules**, banks are required to **collect PAN details** for cash deposits exceeding Rs. 50,000 and for high-value transactions.
* Since your amount is approx. Rs. 80 Lakhs to 1 Crore, **PAN is mandatory** for the bank to accept deposit or issue cheques.
* Without PAN, bank may:

* Reject deposits.
* Report to Income Tax Department.
* Levy TDS at higher rate on cash deposits.

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### 4. **Multiple Cheques & Different Names**

* Splitting the amount into multiple cheques or depositing in different accounts **to avoid PAN** is illegal and can be treated as tax evasion.
* You should **not adopt such practices** as they may attract scrutiny or penalties.
* Deposits should be in your **own bank account** in your own name.

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### 5. **Do You Need to Apply for PAN?**

* Yes, you **must apply for a PAN card immediately**.
* PAN is mandatory for:

* High-value financial transactions.
* Filing Income Tax Returns.
* Avoiding higher TDS rates.
* It’s easy and quick to apply online via [NSDL or UTIITSL websites](https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html).

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### **Summary of Recommendations:**

| Query | Advice |
| -------------------------------- | ------------------------------------------- |
| Tax on sale of inherited plot | LTCG tax applicable; invest proceeds wisely |
| Buying agriculture land | Verify exemption eligibility |
| Banking without PAN | Not possible for such large amounts |
| Multiple cheques/different names | Avoid; illegal and risky |
| PAN Card | Mandatory; apply immediately |

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If you want, I can help you with the **PAN application process** and **capital gains calculation** steps as well.

Would you like that?

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