Hi All ,,,,
I received Rs. 20 Lakhs CASH on sale of land .... I do not maintain any books of accounts ..... What can I do to aoid tax on the same .... and to make the money WHITE....... ????????
I do not want to purchase any property or shares .....
And What if I maintain books of accounts .... How can I bring the amount in books????
Thnks
pay taxes don't avoid taxes
I suggest you 2 options:
1. U/s 54: to reinvest those amount in Residential Property;
2. U/s 54EC: to invest those amount in notified bonds (i.e. Rural Electrification Corporation or National Highway Authority of India)
Thanks,
Chinmay Damle
First calculate long term capital gain based on year of purchase and cost of construction. Please also see the circle rate i.e. stamp value of property for which stamp has been paid. Because higher of the two i.e. sale proceeds or stamp value will be considered for working out LTCG.
Please also see if any amount has been spent in previous years towards soil filling, leveling or boundary construction. That will also form part of cost.
It is always advisable to pay tax and have white amount. If can invest go for option mentioned by Sri Chinmay.
CAclubindia
