In this article, we will talk about how to handle tax and ITR. My mother had purchased a piece of land for 8 lakhs 12 years back. Presently, she has been selling it for 33 lakhs to purchase a flat. The circle rate of the cost of land is 17 lakhs. The registration will be accomplished at the circle rate of ₹17 lakh to avoid payment of excess stamp duty. Now thousands of people are super curious to know how should we take the balance amount and how can she save maximum tax for this transaction. Here we have more information about the news and we will share it with you in this article.
I would suggest you perform the sale deed at the actual value of the transaction and offer to pay a differential amount of stamp duty to the buyer. If you take the distinction in cash and wish to utilize it henceforward for any official purpose, your mother will have to explain the source of the cash. Even if you get the money online, still you will have to explain the nature of the transaction in regard to online money got by your mother. Scroll down to the next page for more information about the news.
Since your mother will be incapable of describing the source of the money, she may have to pay tax at a flat rate of 60% with a penalty in bonus. Since the plot of land has been held by your mother for over 24 months, the proceeds will be treated as long-term capital gains and as your mom plans to invest the sale profits of the plot land for buying a residential house she may assert exemption under section 54F in respect of such long term capital increases subject to fulfillment of other requirements prescribed. So please read the complete article.
Please note that a residential parcel is required to be bought within a period of two years from the date of scale of the property. If she plans to go for self-structures or book an under-construction property, the building has to be finished within 3 years. In case the full money is not used by the due date of filing of ITR, the used by the filing of ITR date. Here we have shared all the information that we had if we get any information then we will update you soon. Stay connected with us for more updates.