converting black money into white money.

nakul gupta (Querist) 13 December 2010 This query is : Resolved
Respected Sir,
Actually i have an issue i.e. suppose Mr.x wants to buy a plot by white money. but he is having black money now if he wants to give loan to his brother and his brother will invest on his behalf as he cannot invest directly due to some legal restrictions. how he can proceed ?

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H.M.Patnaik (Expert) 13 December 2010
I think in this arrangement, Mr. X cannot exercise any control over the property acquired by his brother as per law. Besides,if due to ill-luck , the IT authority in course of assessment of income of his brother ,tries to examine the source of income of the lender i.e. Mr.X who does not have sufficient funds
as per his declared sources of income to extend a loan of like amount , the amount of investment in property will be treated as income of his brother from undisclosed sources and added to his income for the relevant year to be taxed as per IT rules.

Advocate. Arunagiri (Expert) 13 December 2010
His brother has to show his source. By this Mr.X, will come in the lime light as a financier.

DEFENSE ADVOCATE.-firmaction@g (Expert) 14 December 2010
Pl make use of this site for legal queries only.

AMIT BAJAJ ADVOCATE (Expert) 15 December 2010
Its tax evasion and not tax planning such querries should not be asked or answered by anyone.

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