Cash received from s

Cash received from sale of Agriculture land

 

Our one client had received cash Rs. 36 Lakh in FY 2011-12 from the sale of agriculture land, which had been deposited into bank account in the FY 2011-12

Now we have received notice from income tax regarding cash deposited.

We have received this cash in FY 2011-12, while our sale deed was been executed in June 2012 the sale Consideration was 40 lakh in Deed. And we had submitted this deed as source of income from agriculture land.

Again We had received notice from income tax department that you have received the cash in FY 2011-12 But  while Your sale deed was executed in FY 2012-13. Please provide clarification with valid evidence.

 Please suggest here now what shall we do

we had a agreement for our deal but this is agreement value is 80 Lakh. Which is almost double from sale deed.  

 

 

My Question is

Can we submit this agreement as and evidence of Advance cash received against sale deed ( Which was executed  in 2012-13) If yes… then what is the implication on the cash, because agreement has almost double vale from deed.

Is the difference between sale deed and agreement will affect sec 50C or not.

 

I had submitted an affidavit for buyer and seller that as advance cash received from ….so and so against this deal. But ITO is not accepting the same.

 

Please suggest what I shall do in this case. Or what clarification shall be submitted.

 

Thanks

Replies (4)
Clarify the following points:
1. cash received Rs.36 laks
2. deed of rs. 40 lacs.
3. what's about sale agreement of Rs.80 lacs.
Is the area under rural area then its exempted.
Non rural areA

Sale value of consideration
less:Cost ofbimprovement
less:
Cost of acquisition.

tds @ 1% will be applicable on consideration above 50 lacs.


please provide proper clarification to the AO as to that the purchaser didn't have the money to pay u.
Hence the delay.
@ Naveen,

Such issues are better not to be discussed on open forum.


TDS @ 1% provision under 194IA was not there in that year. It was inserted w.e.f. 1-6-2013.
Since the land sold was agricultural land there won't be any impact on taxation point of view since it's exempted whether the sale amount is 40 lakhs or 80 lakhs. but the purchaser will be in trouble to explain the sources for rs. 80 lakhs. if you are not submitting sale agreement then you will be in trouble... choice is yours
@ naveen I find no problem in discussing the same.
But you refrain yourself henceforth from such post.
follow my advice ..

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