Help regarding the sale of property

[Swap24]

I Sold a flat worth 20 lakh.....I received a 22 lakh cheque... The buyer is asking me 2 lakhs in return. Will i be taxed for it?
what should i do

 

[D₹V]

@xywowowvw

 

[CC-Muncher]

I Sold a flat worth 20 lakh.....I received a 22 lakh cheque... The buyer is asking me 2 lakhs in return. Will i be taxed for it?
what should i do

Why did he gave 2lakh extra in first place?

 

[Swap24]

Why did he gave 2lakh extra in first place?

He got himself loan of 22lakh for the property of 20 lakh...just for extra stamp duty and all expense

 

[CC-Muncher]

From what i know you should have taken only 20 lakh from him. Coz now 22 lakh is your earning as per bank statement and you will have to pay tax on it.

If you buy anofher property in current fiscal with 22lakh then no tax.

Do consult with a CA. I am sharing based on my knowledge.

 

[sumitlehri]

He got himself loan of 22lakh for the property of 20 lakh...just for extra stamp duty and all expense

22 lakhs will be your sales consideration for computation of capital gain and to save taxes on capital gain , you can either invest in nhai bond within 6 months of payment or invest in some residential property within 2 years but you have to open cgas account if you wish to invest in residential property

 

[CC-Muncher]

22 lakhs will be your sales consideration for computation of capital gain and to save taxes on capital gain , you can either invest in nhai bond within 6 months of payment or invest in some residential property within 2 years but you have to open cgas account if you wish to invest in residential property

What is cgas account

 

[sumitlehri]

What is cgas account

Capital gain account.Top 4 5 big banks open it..You have to submit all the money before financial year to this account and you cant use this money for any purpose except purchase of residential property after that...Its better to purchase bond.. Interest bhi mil jaata hai and tax bhi bach jata hai..Invest in property only you have good knowledge of it

 

[CC-Muncher]

Capital gain account.Top 4 5 big banks open it..You have to submit all the money before financial year to this account and you cant use this money for any purpose except purchase of residential property after that...Its better to purchase bond.. Interest bhi mil jaata hai and tax bhi bach jata hai..Invest in property only you have good knowledge of it

Great info.

 

[Swap24]

22 lakhs will be your sales consideration for computation of capital gain and to save taxes on capital gain , you can either invest in nhai bond within 6 months of payment or invest in some residential property within 2 years but you have to open cgas account if you wish to invest in residential property

But the registration amount for the sale is 20 lakh... Then also??

 

[AlgoTrader]

Then it is buyer's mistake. Take 10% tax amount from it and tell him you will return only 1.8L

 

[Swap24]

Then it is buyer's mistake. Take 10% tax amount from it and tell him you will return only 1.8L

Capital gain tax is 20%... Why deduct 10%

 

[AlgoTrader]

My bad, deduct 20% then

 

[Swap24]

My bad, deduct 20% then

But registration amount is 20 lakh... I could have got 2 lakh from other source... How would income tax department knows.... I mean 2 lakh is small amount

 

[BlueFlash]

How would income tax department know

lol

 

[CARDBITRAGE]

Why did you even accept 22L in cheque when the sale consideration was 20L? Return back 2L through cheque/bank transfer to the buyer and it should not be a problem.

 

[Swap24]

If I return 2 lakh... Then it won't be a problem right??

 

[CARDBITRAGE]

If I return 2 lakh... Then it won't be a problem right??

Yes. As long as you don't return in cash. 😛

 

[Deleted member 11974]

@xywowowvw

you will be taxed on capital gains that is 22Lakhs - the value of your house at todays rate after indexation benefit
the proceeds can be invested in tax svaing bonds which have a lock in or use that money to buy another house then no tax

 

[Deleted member 11974]

But registration amount is 20 lakh... I could have got 2 lakh from other source... How would income tax department knows.... I mean 2 lakh is small amount

either way you will have to acount for that 2 Lakhs