Hi,
I am going to purchase a plot and then construct house using my Capital Gain Account.
The owner of the plot is asking to mention the total value in "SALE AGREEMENT" and "SALE DEED" to be different.
SALE AGREEMENT (AOS) will mention the Total Sale Value (e.g. Rs.70 lakhs)
ABSOLUTE SALE DEED (ASD) will mention the Guidance/Market Value (e.g. Rs.50 lakhs)
Is the above allowed and legal ?
Let me know by doing the above whether I can withdraw the total amount of Rs.70 lakhs and registration fee of Rs.3.25 lakhs from my CGA using FORM C & D ?
NOTE: ALL TRANSACTION THROUGH BANK ONLY (INCLUDING THE DIFFERENCE AMOUNT)
2 Answers
Hi,
To be frank, In India most of the real-estate deals happen this way!
It is illegal (as accepting Cash is not allowed and can be subject to penalty) but thats how things take place.
Related article :
Rs 2 Lakh Cash Transaction Limit w.e.f 01-Apr-2017 | Details & Examples
If you go through with this deal, Rs 20 lakh becomes black money and you cant deposit in Bank (as you may not be able to justify the source of income).
Even if you accept this Rs 20 lakh by online transfer, as your Sale deed (registered value) is for Rs 50 lakh then how are you going to justify the source of this income to the IT dept (if there is a compliance issue)??
Related article :
Thank you.
In this case I am the purchaser, so let me know whether I can withdraw the total amount of Rs.70 lakhs (as per sale agreement) and registration fee of Rs.3.25 lakhs from my CGA using FORM C & D ?
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