can I take cheque if I sell a flat in pahdi system ?

Mehul H Nirmal (Querist) 28 February 2015 This query is : Resolved
I have a flat in pagdi system..I am atenent for the said building since 35 years..And also geting rent receipt regularly...If I sell this flat or if my landlord gives me buy back offer..can I take cheque ?

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Devajyoti Barman (Expert) 28 February 2015
Better to take demand draft or cash. You can take cheque but deliver possession only after the cheque is honoured.

R.K Nanda (Expert) 28 February 2015
agree with Barman.

Dr J C Vashista (Expert) 01 March 2015
How can you sell the demised premises where you do not have a title (Ownership)?
The tenant shall remain a tenant and never an owner of the flat possessed on pagri on rent.

malipeddi jaggarao (Expert) 01 March 2015
I concur with Dr.Vashista. What buy back offer you are speaking?

Rajendra K Goyal (Expert) 01 March 2015
You are tenant, not a title holder / owner of the property.

If your landlord pays you for vacating the property, the proceeds would be taxable.

If your landlord opt to sell it to you, you can sell it, after it, to anybody. In such case capital gain tax would have to be paid.

Bank draft, cash or electronic transfer are better methods of payment and accepting payment.

Mehul H Nirmal (Querist) 01 March 2015
Yes, Mr. Rajendra Goyal, exectly, you got my point, now my question is ..
1. Will Capital Gain applicable to me?
2. If yes, then it should be calculated on the basis of ready reckoner, then I will deposit or invest that amount ( as per ready reckoner) in NABARD or REC or in any capital gain bond for 3 or 5 years (BOND),

can above can be done ?

Rajendra K Goyal (Expert) 04 March 2015
No question of capital gains.

T. Kalaiselvan, Advocate (Expert) 04 March 2015
Well advised by expert Mr. Rajendra K Goyal. There is no capital gains, however you may consult a local tax consultant on further issues.