Seller asking for Cash Payment on Sale of Property

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  1. RSA

    RSA New Member

    Suppose i am booking a flat for 45lks and on the other hand i am going to sell one of my property for 34lks.
    The flat which i am going to buy for 45lkhs ;the owner of the property says they cant give the agreement value as 45lakhs they ask us to quote how much we can pay in cash and how much we can enter in agreement.
    The question is suppose they are quoting the agreement value as 34 lakhs and i am going to sell my flat for 35 so the deal is done,
    for the remaining amount I have to avail a loan,So is it possible to avail a loan and if yes during the IT return will the question of why loan is availed arise since you have brought and sold the flat for same value so what could be the answer?

    Next question is If they agree to give the agreement value as 45lakhs then they have to pay one time tax ,and tey are expecting that 50%of the tax amount should be paid by us so which is better??
  2. Karan Batra

    Karan Batra Well-Known Member

    No, the Income Tax Dept wont ask you for the reason for availing the loan.
  3. Vishalvj

    Vishalvj Member

    Sir it's a request that u answer my queries.

    1)Mr A gifted a property to his spouse Mrs A. It was sold in future which resulted in ltcg which was deposited into CGAS. But as money went unutilized by Mrs A,she had to pay advance tax. But here clubbing of income implies and thus mr A has to pay the advance taxes. Thus it was PAID by Mr A. BUT Mr A hasnt filed his return for around 10-15 years for unforeseen reasons . Due to Health n losses even if we make his statement his income would always be less than taxable income.Can Mr A file come under scrutiny??
    Actually Mr A's PAN is showing invalid when tried to login.Thus I wouldn't be able to pay my advance taxes as here Mr A is the donor.

    2)If a surplus of a amount is deposited in CGAS over and above the actual capital gains ,can't it(only surplus) be withdrawn for any use.As per my CA,he says to be on safer side I mustn't withdraw as the ITO might not understand my justification and further I would be liable to pay tax on entire capital gains with surplus??? PLEASE ADVICE.
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