I have two doubts srikanth sir,
- i have a plan for purchase of Layout costing 28lacs and document value is only 8lacs and i am a private employee and my all amounts are in banks,Mutual funds, Ulips only, can you give me some suggestion how to handover the non-documented value ( 18-8 )lacs to the real estate company …in general how public do this kind of transactions how they give the non documented value(cash) to builders in purchasing flats?
- Second question is government has issued a IT Norm that cash withdrawals more than 10 lacs will get a IT Notice as i am already an IT Taxpayer ….so if i withdraw cash(from bank after redemption of my MF and Ulips) more than 10lacs and do my transaction will there be any implications to me in IT Angle.
please without feeling pain kindly clarify the above two questions.
1 – My suggestion is to persuade and convince your prospective Seller to accept higher % of the deal amount in non-cash amount.
If that’s not possible then you need to redeem your investments and give the non-documented value as Cash. But, do watch out the tax implications of respective redemptions.
2 – TDS of 2% will be levied on Cash Withdrawals of above Rs 1 cr in a year from a Bank Account.
I think Govt has not implemented the tax on cash withdrawals of above Rs 10 lakh.
Kindly read :
sir thank you for the reply, but one general doubt for 10 to 15 lacs only i am woried how to pay the non documented value………….how so many people who are buying flats which costs 50lacs 70lacs like that ..in those cases the documented value is around 20lacs then how they are handing over the remaing 30 to 40lacs to the builder in the form of cash as the cash withdrawal is very difficult to that much high values…max per day i can draw is 20k for some it is 1lac , if they draw through cheque also the manager of the bank will ask why u want cash for payments use digital…..even if we say something or the other its not one or two lacs almost half crore how people are dealing with this non documented value i wonder ?
Generally a bank account holder may have to just inform his/her bank in advance to withdraw high value cash amounts.
I don’t think a bank account holder has to give reasons for cash withdrawal to a bank staff.
Yes, considerable portion of Black-money (unaccounted) is still being invested in Gold & Real-estate.