IT notice for high value transaction

In Tax Law
I sold a property of mine ( i had it registered for 30 lakhs) and the buyer registered it for only 14 lakhs though the property was sold for 38 lakhs. Ignorantly i received cash of 33 lakhs from them and deposited in my account to settle my home loan. Now i have received a notice from IT dept to account for this amount. How can I explain that the money was given by the buyer

Answers (1)

163 votes

Registering by guide line value is correct, it will not tested as fraudulent transaction. Balance amount excess received you can treat as development purposes. Any how you have to pay capital gain as per value. You have to give explanation to tax authority accordingly. Before submitting any reply first calculate capital gain is applicable for this transaction or not then you proceed

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