I have a plot (non-possession) in sector E-12 Islamabad that was gifted by my father to me a couple of years back. I want to sell this plot now and got an offer of 12,000,000/- but the buyer/agent is insisting to make half payment of 60 lakhs in cash and other half in account and to declare that amount only on the paper.
I have never sold a property before here and I am not sure whether this type of sale is normal or not. I don’t have any problem in paying taxes and all my money is white. It looks like if I go ahead with this I will have 60 lakh in black money and not sure what to do with that.
The dealer is saying it will be difficult to find a buyer who will pay full amount in bank account.
I am a bit confused and want to know if this is how most of the properties are being sold or am I being used to make someone’s black money white?
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Yes, when there are partial payments on your selling as form of Account Transfer and Bank Draft, other part as Cash it’s to Evade Tax. This is normal as much as in more than 90% of RE transactions.
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DC value (sarkari rate, let’s say 35 lakh) is usually less than Market value (buyer and seller agreed price, let say 80 lakh). To Evade/avoid Tax, the DC amount value is paid as a Bank Draft/Pay Order or a Legal Instrument of Payment and rest is received as Cash/under the table sort payment and both parties avoid Tax, more to the benefit of buyer.
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Do whatever, make sure Cash amount not to have any fake notes injected into overall amount.
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Account transfer is not a bad option as you get into account. Just to make sure as FBR and Govt have imposed some constraints with amount of property one can pay without filling some documents and declaration. In worst case scenario avoid having amount in account from some shady folk who night get on FBR radar and you might be scrutinised later for transfer from a dodgy account.
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Make sure to have a agreement (Bayan e Halfi) sort or sale deed mention full amount against sold plot.
Hope that helps