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How to show source of money, from sale of farmland?

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Dipanshu A

20 Points Posted on 09 February 2023

My mother sold her village ancestral farm land recently. She received 45 lac by check and 21 lac by cash. Unfortunately, buyer wanted to buy with circle rate and rest of money, he gave as cash. Her SBI account is already having 28 lac and now she got 45 lac also via sell of this farmland. Now painpoint is this 21 lac, how she is going to deposit it. We don't want to attract any tax or penalties. Will it be asked what is source of this money and can go into complication?
It is common in village to get money cash for seeds, crops, etc., but showing that above 5-6 lac may look little unrealistic.
Please advice.
Thanks

Replies (3)

Quick Summary

A user is seeking advice on how to deposit a significant amount of cash (21 lac) received from the sale of ancestral farmland into their mother's SBI account. They are concerned about potential tax implications and penalties, as the cash portion was given by the buyer in excess of the circle rate. The user is looking for guidance on how to declare this income legitimately, given that village transactions often involve cash but amounts over 5-6 lac might seem unrealistic.