Hi All, how do you manage when the buying party not wanting to go with real price for registration(white), and to give some % of it as cash or to another people's bank and now showing on registration papers of his.(black). There is a deal maker and he tells that he will get that money(black) transferred in USA Bank in few weeks say 4 weeks. I am not comfortable and with that how to work out on this? I am ready to pay capital gains related tax to govt. in India) Please share your experience and how to make it work? The problem is potential buyer not willing to show the real price to govt. Thanks a lot!
This is VERY risky, I know folks have gotten into trouble since US is very strict and this will be illegal transaction. Wait to find a different buyer. Bottomline, dont do it. India is different game but US is completely different matter.
Move on to another buyer. There are people willing to buy legally in India and even that process is complicated when you are living abroad. It's not worth the risk.
Take the certificated, legal price for the house. And not a paisa more. here is somebody else's experience: There was a well publicized experience by Paul Manafort. He used to be campaign manager for Trump, and got caught on FATCA malfeasance -- got unaccounted foreign money, and splurged in the USA. Because he was somewhat of a celebrity, and had very expensive legal team, he got off with minimal jail time. Regular people might have to do full time. Do not plan on any critical projects for the next 20 or so years.
Thank You All, i will wait till it should be on papers for what the agreement is done. It is so tough to do transactions in India as some people don't want to go as per rules. The buyer thinks if more value on paper, more property tax he will be paying in coming years and one time registration taxes to pay govt. I know lot of people when it is to pay for India govt, trying to search ways to escape paying. As if it is an option and not a rule.
