Depositing 20 lakhs by cheque in savings account
sinvas
(Querist) 10 November 2014
This query is : Resolved
Sir, I have a doubt, I just sold my property and the person who is purchasing got his approval on the loan applied and bank is paying me thru cheque of 20 Lakhs. Now my question is can i deposit this in my savings account, and shall i need to pay tax on my amount. Also advise me can i deposit the same in a cooperative bank. Plz. suggest. waiting for your valuable suggestion.
kumar
hyd
Anirudh
(Expert) 11 November 2014
Dear Srinivas,
First you have to indicate the kind of property that you sold - whether it was plot of land, house etc.
You also have to indicate whether you held the property for more than 3 years before selling.
If so, then the capital gain that you received will be subjected to tax at 20%.
You also have to indicate whether you propose to buy any new house or you purchased any new house just one year prior to the sale of your property.
There are ways available to save the capital gain tax, which will depend upon your plans.
But only after knowing the details from you, one will be able to give you proper answer to your query.
In the meanwhile, you can deposit the money in your Savings Bank Account. But, if you are not going to either buy any new property etc., you can avoid paying tax by investing the entire capital gain amount (not the entire sale proceeds) into NHAI Bonds or Rural Electrification Bonds.
If you are not comfortable in discussing the details here (naturally one will not be comfortable to discuss things in public platform like this), please consult a CA in your area and act accordingly.
ajay sethi
(Expert) 11 November 2014
agree with MR Anirudh
Rajendra K Goyal
(Expert) 11 November 2014
1. You can deposit the cheque in your account. The interest earned would be added in your income.
You have to pay capital gains tax if applicable.
Isaac Gabriel
(Expert) 11 November 2014
You can deposit the amount in any bank including Cooperative Bank.Seek the advise to get exemption from capital gains tax from the tax consultant.
Suhail A.Siddiqui
(Expert) 11 November 2014
Better to deposit Capital Gain Account in place of saving bank account to avoid capital gain tax. consult Professional, who will guide you to plan and save Tax.
sinvas
(Querist) 13 November 2014
Hi,
thanks everybody,
The property which i sold was an independent house and it was held more than 3 years before selling. Yes, presently i thought of not investing any more on real estate. i never purchase any property prior to 1 yr before this transaction happened. I thought of splitting the amount into 4 parts (in 4 different a/c's - self, spouse, child (15 yrs)) and going for a Postal deposit (NSC) fixed, say for seven and half years which doubles the amt. In this scenario, now plz. suggest, how much % of capital gains need to be deducted ? i am an private employee i would like to know how this reflect in my tax source. Plz. suggest..
Anirudh
(Expert) 13 November 2014
Capital Gain = Sale proceeds (minus) indexed cost of acquisition (minus) expenditure incurred in connection with the sale of the property like advertisement, brokerage paid etc.
You have to calculate the capital gain yourself as per the above formula.
You have to pay 20% tax on the amount of capital gain.
sinvas
(Querist) 15 November 2014
sir,
can somebody help me out in suggesting that, can bank give more value cheque for housing loan than that mentioned in sale deed. what exactly happened in my cousin's case was, when he is selling the house the purchaser took housing loan of 25 Lakhs and in the sale deed it was mentioned as 21 Lakhs for registration value, here his only concern was how to show the source for that balance 4 Lakhs amount. On inquiry the purchaser replied that 4 Lakhs would be seperately shown by generating a construction agreement showing details of construction break-up upto 4 Lakhs.
Pls. suggest can they proceed for registration process.
rgds.
kumar
T. Kalaiselvan, Advocate
(Expert) 16 November 2014
For your subsequent question you have an answer with yourself, there is nothing wrong in the suggestion made by the purchaser.
