Tax for capital gains taken in form of cash
I recently sold a land for my house construction purpose. I bough it way back in 1986 for 18,000 Rs and now sold for 8L as per Govt Value. But the seller paid be 3L in cheque and rest in cash. I used all this amount for my construction and gave this money in form of cheque to my builder. Now my CA says I need to pay tax for money in cash even I paid to builder using cheques. Can some one help me what is best way to make sure I do not pay tax and everything was done legally no extra money taken. Govt Value was only paid to me as it was less developed area. And for all transactions my PAN was quoted.
Thanks in advance.
Asked 7 months ago in Capital Gains Tax from Visakhapatnam, Andhra Pradesh
The Govt Value of property was 8.34 L and I sold it for 8.34 L out of which 3L was paid in cheque and rest in cash. But PAN was quoted and all the money was deposited in bank nothing black and builder was paid in cheque.
And for capital as per Amit Kumar Narula we can use the amount within 3 years for construction, let us assume I did not use anything this year so I should declare I did not use money and declare in tax filing. (This is just a question assuming I did not use money I received and proposing for construction this year).
Asked 7 months ago