Buying Land NOT with True money

[Ramkguru]

Hello

We all know when you (as US CITIZEN/OCI Holder)buy land, we will show 40% in paper and rest 60% black money. But 100% of them are taxed US money in NRE Account. When you sell the property how can you distinguish capital gain? Lets say you paid 40,000 Rs(60,000 in black) and when you sell you make 200,000 so the capital gain is actually 100,000 but as per paper its 160,000, so do you pay tax for 60,000?

 

[ginnu]

Hello

We all know when you (as US CITIZEN/OCI Holder)buy land, we will show 40% in paper and rest 60% black money. But 100% of them are taxed US money in NRE Account. When you sell the property how can you distinguish capital gain? Lets say you paid 40,000 Rs(60,000 in black) and when you sell you make 200,000 so the capital gain is actually 100,000 but as per paper its 160,000, so do you pay tax for 60,000?

Dont pay black and pay the full amount through NRE account that makes simple(keep the copy of NRE check and you can also get letter from Bank that XYZ amount was paid to ABC from NRE account 122222222222. you can talk to CA in India.

 

[sanjoseaug20]

Hello

We all know when you (as US CITIZEN/OCI Holder)buy land, we will show 40% in paper and rest 60% black money. But 100% of them are taxed US money in NRE Account. When you sell the property how can you distinguish capital gain? Lets say you paid 40,000 Rs(60,000 in black) and when you sell you make 200,000 so the capital gain is actually 100,000 but as per paper its 160,000, so do you pay tax for 60,000?

Yes you pay tax on all gains on paper.
Not to advise a bad thing, but if you already involved in black on buying side, it might be wise to do the same in sell side.