My parents are buying house for 46 lakhs. my father is taking loan to buy home. we gave 13 lakhs as advance, current owner is telling us that he will not accept cheque for remaining amount, as it will attract tax.
what should we do? bank will give only cheque. It is residential property... not in venture and not in apartment. Is it true that he have to pay tax??
he built that house 20 years back and now he is selling.
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Please. Urgent !!
Replies (6)
cash payment of such huge amount will have tax scrutiny chances
yes it is true, he has to pay Long term capital gain at the time of income tax return if sells house at profit.
If yes, how much he has to pay as tax?
it's 20 % of gain value.
But he cannot accept cash of more than Rs. 10,000/- for sale of any immovable property. At the tax liability cannot be escaped due to circle rate valuation.
As per my opinion, you should offer the seller that tax liability is born by you.
It will give you two benefits and one loss
1) Loan amount will be sanctioned to you easily as bank will provide loan on amount of registry.
2) Amount paid for tax to seller will include in purchase cost.
Loss
1) You have to pay for house more amount in comparative to first case.
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