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What to do with 50L Cash?

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Benevolent
Sudarshan61

One of my friend has received 50L cash + amount in bank for a property

Give some advice on what can be done with 50L cash

1. Don't want to spend use less stuff

2. Can't deposit in bank

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Pro Community Angel Pro Community Angel
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Suggestions in order of personal preference 

1) Buy a new property

2) Keep the amount at home and slowly add in bank over 3-4 years. The opportunity loss would be significant 

3) If you have a trusted contact who borrows money in cash then consider that. Builders, other businessmen often take such loans. This is very risky though, have personally lost money even though the other person was a relative. 

4) Buy agricultural land and start a farming business. You can start any business but suggested farming because it's straightforward. Easy to hire labour and get reasonable returns (would be lesser than other businesses but sustainable with no tax) 

Pro Community Angel Pro Community Angel
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Suggestions in order of personal preference 

1) Buy a new property

2) Keep the amount at home and slowly add in bank over 3-4 years. The opportunity loss would be significant 

3) If you have a trusted contact who borrows money in cash then consider that. Builders, other businessmen often take such loans. This is very risky though, have personally lost money even though the other person was a relative. 

4) Buy agricultural land and start a farming business. You can start any business but suggested farming because it's straightforward. Easy to hire labour and get reasonable returns (would be lesser than other businesses but sustainable with no tax) 

Generous Generous
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Bro, It's very tough to hire labor in Farm/Agriculture nowadays. Ask someone who is doing it. 😬
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Deal Cadet Deal Cadet
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buy property

Deal Newbie Deal Newbie
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In delhi ncr, good properties don't come below 1cr
Benevolent Benevolent
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Hard to use black money unless u r politician/has connections

Pro Community Angel Pro Community Angel
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Suggestions in order of personal preference 

1) Buy a new property

2) Keep the amount at home and slowly add in bank over 3-4 years. The opportunity loss would be significant 

3) If you have a trusted contact who borrows money in cash then consider that. Builders, other businessmen often take such loans. This is very risky though, have personally lost money even though the other person was a relative. 

4) Buy agricultural land and start a farming business. You can start any business but suggested farming because it's straightforward. Easy to hire labour and get reasonable returns (would be lesser than other businesses but sustainable with no tax) 

Pro Community Angel Pro Community Angel
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Following thread in case someone suggests something interesting smile 

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Benevolent Benevolent
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Invest in Mutual fund/share by distributing money in your different family member's name. 

Benevolent Benevolent
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Need to go in bank account...total avoid..

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Super Stud Super Stud
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keen observer.
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Generous Generous
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There are many ways to convert black money into white. Check the internet. It's not a huge amount.
Deal Hunter Deal Hunter
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Income tax department after seeing this post :

images

Deal Cadet Deal Cadet
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He should purchase property it would best as he can pay amount in cash also

Deal Newbie Deal Newbie
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In delhi ncr, good properties don't come below 1cr
Deal Newbie Deal Newbie
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Give secured loans

Super Stud Super Stud
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Income Tax Department wants to know your location.

Do you want to share your location? 

1. Yes

2. Yes

Deal Newbie Deal Newbie
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I want your location

Deal Cadet Deal Cadet
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If u r in hyd, i can borrow some as loan with fd+1% interest 

Benevolent Benevolent
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Merey pas ek scheme hey.

Avant Garde Avant Garde
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I will say give it to some jweller shops....which is trustworthy and get intrest on that.....for e.g in my area on 10k we get 100 as intrest a month.....you can split between various jewellers........

Make sure they are trustworthy......

Helpful Helpful
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No jeweller gives this much ... atleast not in blr.

We file jewellers gst returns ... and i know no one doing it at  this rate. 
Commentator Commentator
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when you say "received" does it mean he/she has sold a property and got 50L cash + money in bank? as if that is the case then I guess anyways aadhar/pan would have been involved and if this amount is via property selling then only for the capital gain amount after indexation will be taxed for which you can deposit the profit (capital gain) amount in 54EC bonds for 5yrs (guess now its 5.5% interest) and only on the interest earned, you will need to pay tax annually.. 

Pro Community Angel Pro Community Angel
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The txn value would have been recorded at only the value that is received in bank.

This cash amount is unrecorded. 

No point of discussion otherwise. 

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Helpful Helpful
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Do consider capital gain tax....if u invest in property again rhen i guess the gain can be setoff

Pro Community Angel Pro Community Angel
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That's not an option in most cases. Otherwise the buyer of property would receive notice for undisclosed assets (most probably) + not deducting tds + 100% penalty for receiving more than 2 lakhs in cash (avoidable if buyer agrees to deposit in bank ) 

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Helpful Helpful
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Your CA is the best person to suggest what to do for this ...

In chat , we can only give generic answers.


But the actual case might vary. So, if you are filing returns with a CA ask him or pls pm me .


 

Pro Community Angel Pro Community Angel
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+1

Take professional help. 

Savings Mentor Savings Mentor
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Start a business and pay employees salary in cash. smile

Generous Generous
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He should have planned well in advance before confirming the deal of the property. 

20% is the capital gain tax; on 50L it's 10L of tax amount, saved by not showing it as capital gain. 

Pro Community Angel Pro Community Angel
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For that he would have to insist the buyer to pay in white. Any intelligent buyer would have paid 10-15% or even less in such case. So not much gain left there.

Otherwise also, capital gains are mostly insignificant after indexation. So no one worries about that but its very difficult to find buyers who would pay full amount in white.

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The PostMighty The PostMighty
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Buy a new property

And use the rest of the money in stock market

Deal Newbie Deal Newbie
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In delhi ncr, good properties don't come below 1cr
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Deal Cadet Deal Cadet
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buy multiple  property in cash plus bank amount from a small builder (fully finished flat) ie multiple property. like buy two 50 lakh property with 25 lakh cash+ 25 lakh bank amount. or do it more multiples. then sell it again after some time for say 60 lakh. then buy  another property for 35 lakh(capital gain amount) and sale it for no gains/little gain.(zero capital gain). it will take multiple transaction and years  but i think this is most safe.

never had this much of black money so don't know. just an idea.

Benevolent Benevolent
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Wow...

What about approx 10% govt taxes on buying..also no guarantee that property value will go up and one can sell it on need 

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Deal Subedar Deal Subedar
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Invest some in Mutual Fund , Invest Some in Laxmi Chit Fund , Baaki ka Bhandara Karvado. :p

Pro Community Angel Pro Community Angel
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How to invest in all these in cash ?
Dabba markets toungueout
The PostMighty The PostMighty
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Best would be buy a property. Builders still take some component as cash compulsorily!

Deal Cadet Deal Cadet
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Buy physical gold from some reputed local jeweller of your city and keep it in bank locker. Don't go for branded jewellers as they don't deal in cash of this much amount.

Helpful Helpful
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Buy gold coins

Benevolent Benevolent
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Any online platform which offers COD?

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Helpful Helpful
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FD KARDO GHARWALON KE NAAM PR ALAG ALAG BANK MEIN

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