My mother has sold a property of Rs.25lacs which was actually purchased in 1981 for Rs.5000. After calculation there is a hefty amount of tax which is to be paid they are not interested in buying another property and we cannot even invest in capital bonds as six months have passed. What should i do to save tax. And one of the CAs have advised that it would be ok to take risk and not file the return as she has never been an assessee till now. What should i do? Please guide.
Registrar or Sub-Registrar is required to file annual information return as per section 285BA of income tax act if in case of sale of property more than 30 lac, Here value of property less than 30 lac hence it will not be reported in AIR. but still you are liable to pay capital gain tax. Income tax department may use other sources to find out this tax evasion.
it's always better to disclose the capital gains bcoz in one or other way we'll get to know that your mother has sold a property and has not filed ITR. that time you ll liable to entire sale consideration as tax, interest and penalty. so better file return