Notice u/s 148 - Cash payments against property

If person A (Buyer of property) has received a notice u/s 148 because search has been conducted on B (Builder) and cash payments against property deal has been revealed then ideally what should be the course of action in case of A?

If A had made payment out of his white income, Should he disclose the same by capitalising advance against property and explain his source of such cash payment? Or he should keep such cash payments undisclosed?
Replies (1)

If person A has received a notice u/s 148 due to a search conducted on the builder B and cash payments against property deal have been revealed, it is important for person A to carefully evaluate his position and consult with a qualified tax professional before taking any action.

If person A had made the payment out of his white income, it is advisable for him to disclose the same by capitalizing the advance against property and explaining the source of such cash payment. This will help to establish that the payment was made from legitimate sources and that there was no intent to evade taxes.

Keeping such cash payments undisclosed could lead to further scrutiny and potential penalties and interest if discovered later by the tax authorities. It is always better to be transparent and disclose all relevant information to avoid any future legal or tax issues.

In any case, it is important for person A to maintain all relevant documents and records related to the property deal, including receipts, agreements, bank statements, and other relevant documentation. These records will help to establish the legitimacy of the transaction and the source of the cash payment, if necessary.

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