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Who sign agreement and who given money in land deal is diffent

05 April 2019

If i sell a land and sign a agreement with person A but person B gives money from his account on A behalf.The deal is with all proper document and all cheques or online transfer and no cash.Will there be any problem for me if IT ask what is source of money.

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6 Replies

Murali Mohan (Article Assistant) (22 Points)
Replied 05 April 2019

U can show the land sale deed. I'll be sufficient evidence. Also make sure you compute capital gains on the sale and show it in your return

Neha Pahuja (127 Points)
Replied 05 April 2019

As per my understanding as far as Sale Agreement is in your name..and you are disclosing capital gain /loss on sale of such property in income tax return....and paying taxes if applicable...then no question arises...

gaurav vivek (10 Points)
Replied 05 April 2019

Ok, so till i have proper document ( sale deed with full amount in my name ) i shouldn't worry who is giving that money.

Murali Mohan (Article Assistant) (22 Points)
Replied 05 April 2019

Yes

CA. Abhishek Kumar Maurya (ACA) (490 Points)
Replied 05 April 2019

Pls keep in mind the provisions of benami act...a person paying on someone else could be treated as beneficial owner of that property.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 05 April 2019

what's mentioned in the sale deed? that is so and so has paid so much of amount towards sale consideration. in sale deed everything will be there such as who has paid, mode of payment, instrument number etc.. if person B's payment details are there in sale deed, then there's no issue... or less it's your onus to prove that B's payments are pertinent to sale, otherwise the payment received from B will be treated as your income under section 68 apart from capital gains