i hve sold a house for 22 lakh which i received through cheque and i purchased a house for 20 lakh in same year.but the problem is that the party from which i bought want me to withdraw that money from bank and give them cash. is is legal? is it possible? tell me what will i do
1 Answers
Most probably the seller is taking cash to avoid showing gains and paying income tax on that.
If you can get exact cost of house written on registration documents, it will be legal and I think you can even pay in cash. Registration needs PAN number of both seller and buyers, so it won't be any issue.
But if you withdrew such large amount of cash from bank, it will be reported to income tax department and there is a fair chance that IT department will raise a show cause notice/scrutiny.
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