Property related questions
meena kumari
(Querist) 01 April 2013
This query is : Resolved
Respected Sir,
I am housewife & i am selling my home In 55 lac Rs.
my husband is alive & i have two sons.
I am owner of the property & I live in delhi.
I dont have PAN CARD & i dont file any ITR.
I have only one property, My questions are :
Q.1 how to divide this property's money in WHITE MONEY
1. MY PART 2. MY ELDER SON 3. MY YOUNGER SON
in Legal way, please tell me major steps involved.
Q.2 How to take money from buyer in cash or cheque, so that
"BATWARA" can be done in white easily?
Q.3 will i have to pay any TAX as i am doing "BATWARA" on this property?
Thanks!
Devajyoti Barman
(Expert) 01 April 2013
You can receive the consideration amount in cash or DD and get the money distributed among your children.
meena kumari
(Querist) 01 April 2013
is it fair to take all amount in cash & divide this amount in WHITE MONEY by law?
& what about taxes?
prabhakar singh
(Expert) 01 April 2013
You can take consideration in any mode up to any extent shown in the registered sale deed and that would only be accountable money in your hands which you would call white,any amount over and above off the record taken in any manner would be called unaccounted money which you would call black.
The money shown in sale deed as consideration would legally be deemed to have been received by you and Capital Gain tax over it would be payable by you irrespective of the distribution (BATWARA)methodology adopted by you.
Any money given to children by you out of recorded sale proceeds can be GIFTED which would not be taxable in hands of children.
But if gift is not made properly following legal procedure ,I.T. Authorities might be able, in their discretion, to treat that amount either a cash credit from you to them or even as income in their hands.
Raj Kumar Makkad
(Expert) 01 April 2013
In the light of legal position explaned by Mr. Singh, you cannot play any trick of batwara fo save your tax liability as this is more than taxable limit but you are not liable for the taxation over entire money rather have to pay only over capital gain. You may even save it if you take the help of a tax consultant. You shall have to invest in the residential property the outcome within next 2 years as per procedure.
meena kumari
(Querist) 02 April 2013
Thanks Mr. singh & Mr. Makkad for explaining my questions in brief.
please also help me to know that how to distribute this money to my sons in legal way so that they can deposit this money to their bank accounts & use as per their requirements for purchasing property?
prabhakar singh
(Expert) 02 April 2013
Gift is the way I told you,re read my earlier post.
meena kumari
(Querist) 02 April 2013
can i gift 10-10 lac to each child? will IT department not ask me how i got that GIFT MONEY?
prabhakar singh
(Expert) 02 April 2013
I advised you to first pay capital gain on your white receipts then gift it to children.
