Hello Friends,

I am in need of some serious urgent advice related to the sale of our property. It has been finalised at 24 lakhs.

Now as it will be a first deal for me I am totally newbie in this, because when I asked one agent he told that registration charges now depends on per square feet of plot / land which you are going to sell and it does not depend on the value which you put in the sale deed / registration papers.

Now the buyer has mentioned to give both black and white he told he will arrange loan and give us the Bank DD which will be total white money around 15 - 18 Lakhs and the remaining money will be black i.e in cash.

Now I am really worried about where to keep so much money, can the direct deposit of DD in bank will it attract any tax, or do I need to show some documents that its a capital gain, also the black money if I directly deposit it in Bank will I be questioned as to from where you got so much money etc etc.


Another thing is this is not our extra property sale so the amount which we receive by this sale will be invested in another property within 2-3 months depending on how soon we can get suitable property, so can black money be safely taken in flight, I mean I have travelled in plane but the Airport people even scan the cabin baggage, and if they find an amount of 4-6 lakhs can I be questioned on its origin???

Or should I open 10 bank accounts in 10 different banks and deposit the black money little little in each account.

Already we have 4 bank accounts, and I think I can deposit upto 1.5 lakhs in each bank account, without any issue.

Can someone please advise me on safe transfer of the money from the buyer and to keep it safe till we get new property to invest in.

Please do advice me, its a humble request.

Regards

RAVISHANKAR
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  • Originally Posted by rsk11584
    Hello Friends,

    I am in need of some serious urgent advice related to the sale of our property. It has been finalised at 24 lakhs.

    Now as it will be a first deal for me I am totally newbie in this, because when I asked one agent he told that registration charges now depends on per square feet of plot / land which you are going to sell and it does not depend on the value which you put in the sale deed / registration papers.

    Now the buyer has mentioned to give both black and white he told he will arrange loan and give us the Bank DD which will be total white money around 15 - 18 Lakhs and the remaining money will be black i.e in cash.

    Now I am really worried about where to keep so much money, can the direct deposit of DD in bank will it attract any tax, or do I need to show some documents that its a capital gain, also the black money if I directly deposit it in Bank will I be questioned as to from where you got so much money etc etc.


    Another thing is this is not our extra property sale so the amount which we receive by this sale will be invested in another property within 2-3 months depending on how soon we can get suitable property, so can black money be safely taken in flight, I mean I have travelled in plane but the Airport people even scan the cabin baggage, and if they find an amount of 4-6 lakhs can I be questioned on its origin???

    Or should I open 10 bank accounts in 10 different banks and deposit the black money little little in each account.

    Already we have 4 bank accounts, and I think I can deposit upto 1.5 lakhs in each bank account, without any issue.

    Can someone please advise me on safe transfer of the money from the buyer and to keep it safe till we get new property to invest in.

    Please do advice me, its a humble request.

    Regards

    RAVISHANKAR


    Dear Ravi,

    Before you decide to depoist any cash in your existing Bank accounts, please bear in mind that every cash transaction in excess of Rs. 50,000/- is shared by the Bank with RBI (possibly income tax as well).

    Secondly, you can open as many bank accounts as you want but every where you will have to furnish your PAN card. So yes the transactions can be traced to you.

    I would suggest you to seriously consider your option of selling your property for cash. For 3 reasons:

    1 You seem to be from the service class. And trust me you would never like to end up on the wrong side of law. For a businessman who makes his bread and butter by avoiding paying taxes, its a totaly different story. They would have a battery of Lawyers and CAs to take care of such things.

    2 The profit that you would earn from the sale of your property will be taxed 10%. Where as in case of Tax avoidance you can end up paying as much as 300%. So it does not make any economic sense for you. You are risking too much for too little.

    3 A person who buys property by paying cash, in all likelyhood will be a speculator and not the end user. Look for a end-user, it wont be too difficult to find. Generally they are people from service class, and would be more than happy to do an all cheque (white) deal.

    Hope this helps.

    King_jsr
    CommentQuote
  • Originally Posted by king_jsr
    Dear Ravi,

    Before you decide to depoist any cash in your existing Bank accounts, please bear in mind that every cash transaction in excess of Rs. 50,000/- is shared by the Bank with RBI (possibly income tax as well).

    Secondly, you can open as many bank accounts as you want but every where you will have to furnish your PAN card. So yes the transactions can be traced to you.

    I would suggest you to seriously consider your option of selling your property for cash. For 3 reasons:

    1 You seem to be from the service class. And trust me you would never like to end up on the wrong side of law. For a businessman who makes his bread and butter by avoiding paying taxes, its a totaly different story. They would have a battery of Lawyers and CAs to take care of such things.

    2 The profit that you would earn from the sale of your property will be taxed 10%. Where as in case of Tax avoidance you can end up paying as much as 300%. So it does not make any economic sense for you. You are risking too much for too little.

    3 A person who buys property by paying cash, in all likelyhood will be a speculator and not the end user. Look for a end-user, it wont be too difficult to find. Generally they are people from service class, and would be more than happy to do an all cheque (white) deal.

    Hope this helps.

    King_jsr

    Good advice but in reality there is just no way without black money. In Chennai there is no LAND TRANSACTION where in black value is less than 50% of the transaction. How to handle black is an enigma and I for one will like folks to throw their views on the same. Infact it is one reason I have not sold any of my properties so far!
    CommentQuote
  • Originally Posted by Natarajg007
    Good advice but in reality there is just no way without black money. In Chennai there is no LAND TRANSACTION where in black value is less than 50% of the transaction. How to handle black is an enigma and I for one will like folks to throw their views on the same. Infact it is one reason I have not sold any of my properties so far!

    To add to the above.
    1. Suppose one has a property worth 2crores. If he can collect white for full he can pay 20% tax and have 1.6crores in his bank.
    2. Instead if he gets 1cr in white and 1cr in black then he will pay 20L tax and have 80L in bank. However his 1cr in black can only be used and no money generation possible unless he reinvests it in some other property.
    In other words black money is not redeployable but is usable.
    Now how to spend 1cr is a job by itself.
    So one can try to use hawala diwala etc but then it is dangerous as one can imagine. In net, this country has been made black by the politician for the politician. Gotcha?
    CommentQuote
  • The government rates way below the market rates.

    The reg and stamp duties seem high.

    Politician use money to erect fancy statues and phony schemes.

    Does it motivate people for white transactions.

    Me thinks! its by delibrate policy to generate side income and convert black to white.

    Huge black money can be converted to miniscule white money by way of property transactions.

    political parties need not cry hoarse abt black money . just CHK their own party peoples money and their multiplication while humbly serving people.
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