r2i forum

Hello All,

I am an NRI planning to sell my plot for 40L. I bought 5 years back for 25L.
I am planning to put the sale money in my NRO a/c. I understand that being an NRI I have to pay
20% capital gain tax. Now the problem is that when buying the plot, it was registered for only 10L.
And the indexed value of property is around 15L. So in effect I have to pay .2 x (40 - 15 ) = 5L!!


Here's my question. Is there a way I can atleast minimize this tax? What if I make the deal half white half black.
So I register the sale for 20L and end up paying only 1L. Anyway this what I am planning right now. From what I understood
most deals in Bangalore are done like this.


My questions are:
1. The 20L that I am accepting in black, does it have to be cash? Can I accept it as another DD? I was thinking of depositing both
the white DD and black DD in my NRO a/c and then immediately transfer 20L to my dad's indian savings a/c.


2. Now if I have to accept it as cash, is it OK if I deposit it in my dad's savings a/c? I understand PAN no. has to be provided for cash deposit over 50K
but will that really be a problem with income tax? Isn't this a small amount to be on the IT guys radar?


3. If 1 and 2 above won't work, guys, please advice. There is no way I want to pay 5L as tax for what is actually a 15L profit. Hope you guys understand.

Hi Guys, Any advice?
Thanks.

aditya2204;592048What if I make the deal half white half black.

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