I am selling a propoerty which I bought in 2008 for 1850.00 per sft. The buyer is willing to pay 5500.00 per sft, however wants to register the property at the govt guidance value of 2800.00 per sft and pay the difference between agreed price and registered sale deed, by cash.
The total sale consideration amount in the registered sale deed will be approx 49Lakhs. I will get about 45Lakhs in cash. I am buying another property where the seller wants some cash. So, managing the cash is not a problem.
My questions:
(1) The registered sale deed will be lower than other registered propoerty in the same locality. Will it cause any alarm bell in income tax system ?
(2) Is there any other way to get the cash amount in a more transparent and legal way? Like against my interior work, electricity fittings and painting that I have done to improve the house ?
Looking forward to you response.
CAclubindia
