I want to pay loan of Rs 20 lakhs by selling a house which will be sold in Rs 25 lakhs. I have number of questions for which I want answers.. 1. If registry will be done in Rs 15 lakhs then will this money be white money and how can rest amount be taken that is Rs 10 lakhs. Can we take 10 lakhs in cash. And if we want to taken token money how it should be taken. Token amount will be Rs 6 lakhs. Do I have to give income tax on selling this property as we are selling it at loss of Rs 5 lakhs. 2. My question is how we can pay loan of Rs20 lakhs in the best manner. Will I have to give any tax if we pay the loan as I fall in 30% tax bracket. 3 what is the best way of selling this property in all white money. 4. If I want to pay Rs 20 lakhs by selling this property worth Rs 25 lakhs how it can done so that I can get maximum white money and save myself from giving tax if I am entitled to give.
Hi,
1. We recommend you to do the registry at 25 lacs so that all the money comes in white
2. If you are selling the property at loss, no capital gain tax will be attracted. However you have to show the transaction in your return.
3. Refer point 1.
4. You need not pay tax
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
1. You cannot take cash for registration. Token money need to be taken by Cheque or other mode than cash i.e. RTGS, NEFT and others but not cash. If it is at loss then you need not pay any tax.
2. It is suggested that you do registration for 20 Lakhs as till 20 lakhs you will not have any profit. It will be easy to pay loan.
Hello Sir,
To sum up your query, you have mentioned that you are incurring a loss of Rs.5 Lacs in such a case no capital gain tax has to be paid by you. You should take the entire amount in cheque i.e Rs.25 Lacs.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
But noone is ready to do registry of 25 lakhs. All are saying that we will do registry of Rs 15 lakhs and rest 10 lakhs we will give in cash. What shall i do now. Can i take cash of Rs 10 lakhs and keep it at home. I have heard that its not legal to take cash more than Rs 2 lakhs. Than how can i sell my property if no buyer is ready to do registry of more than 15 lakhs. Rest 10 lakhs they want to give in cash. Please solve my query.
Sir as per Law in registration of property you cannot take cash more than 20000. If not you need to pay tax on cash portion.
If Government value of the property is 15 Lakhs then take cheque for 15 lakhs rest take in cash which will not be shown anywhere. 5 lakhs pay for loan out of your own savings
Hi,
You ought to take the entire consideration in cheque. Also, you will be liable to pay capital gains tax if there is a capital gain. If there is a loss, then there is no need to pay tax.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LLB
Hello,
Taking any amount of undeclared cash is illegal. Be it Rs.10 also. I would suggest you find a buyer who is ready to pay you everything in white.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP