Capital gain sec 50c

hi friends, (the transfer of property occured in f.y 2008-09) Mr.A sold a Land to Mr.B for a sale consideration of Rs.20 lakhs(Stamp duty value :10 lakhs) Indexed Cost of acqusition: 3 Lakhs Mr.A invested Rs.7 lakhs in capital gains bonds & he paid long term capital gain on remaining 10Lakhs @ 20% But Mr.B prepared the sale deed as per stamp duty value i.e Rs.10 lakhs and paid stamp duty as per Rs.10 lakhs Now my question is whether showing of the excess amount Rs.10 lakh (20lakh-10 lakh) under the head capital gains in income tax return is correct or not for which no other sale deed is available
Replies (1)

Dear this question is applicable in Real Life. Here there are general practice of Black money in transfer of properties. You have nothing to what is done by Mr. B as Mr. A has to see their own matters.

 

You can do the treatment in the following 2 ways:

 

1) Show Rs. 10 Lac as White money and receive balance Rs. 10 Lac in Black i.e. Purely Cash no banking transaction. In this way you are able to show only Rs. 10 Lac as Mr. B is also showing Rs. 10 Lac according to Stamp Value. No body will question on this. But you have to keep Rs. 10 Lac black safely. Remember don't have any banking transaction.

 

2) Show entire Rs. 20 Lac as white money whether received in cash or not doesn't matter and pay the tax as you have mentioned. however if the question arised on assessment that Mr. B has shown Rs. 10 Lac than it's the matter of Mr. B and the other party will be in trouble. You are free from that.

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