Property sale
ganesh
(Querist) 30 May 2012
This query is : Resolved
Mr X, a govt employee retired in year 2010. In 2011 he was gifted a plot of land by his daughter. in the same year he sold that plot to a third party by a registered sale deed. Mr X is having some ongoing dispute with MR Y for many years and Mr Y came to know of the sale and threatened Mr X that Mr X has received some amount of money over and above the sale deed from the buyer in cash and that he will file tax evasion petition and also disproportionate assets case against him.
(a) If indeed some money had been received by X over and above the amount reflected in sale deed...how can he pay tax on it now since sale deed already registered and can X show extra amount received in his income tax return or will it create more problems as the same amount not reflected in agreement of sale and sale deed and the buyer will always deny that he paid anything in cash over and above the sale deed amount?
(b) The employee retired prior to gift deed by his daughter and sale deed by him. Now in case some undisclosed income is recovered by police/IT from his house during search operation, is he liable to a disproportionate assets case as he was on longer in govt service since 2010 or his liability is restricted to paying tax alongwith penalty on the undisclosed amount which was received in cash from the buyer?
ajay sethi
(Expert) 30 May 2012
since sale deed is diuly stamped and registered in 2011 you cnanot pay extra stamp duty now .
the rea wherein property is located must have seen some transactions in recent past . what is value declared in those agreements . if rate mentioned by you corresponds to the value mentioned in other agreements you dont have any thing to fear .
in the vent tomorrow you receive any show cause for undervaluation of sale transaction you an pay differnce in stamp duty claimed and also pay penalty as may be required by law .
it is always advisable to make full payment s by cheque to avoid legal complications later
ganesh
(Querist) 30 May 2012
@Mr Ajay Sethi sir thanx for ur prompt reply...also since u are vastly experienced in such matters,pls advise if such like cases can attract corruption act(sec 13(e)) on a retired govt employee( who is not a public servant anymore) or the case falls within the domain of income tax department only.....
