How to handle tax and ITR filing on property sale
Executing the sale deed at the actual value of the transaction and paying the differential amount of stamp duty in cash may require explanation of the source of the cash. Accepting the money online would still require explanation of the nature of the transaction
My mother had purchased a piece of land for 8 lakhs 12 years back. Now She is selling it for 33 lakhs to buy a flat. The circle rate of the piece of land is 17 lakhs. As the registration will be done at the circle rate of ₹17 lakh to avoid payment of excess stamp duty, how should we take the balance amount? Can we take it in cash or through online transaction? How can she save maximum tax for this transaction? Will my mother have to file her ITR for this transaction?