Payments of more than rs. 20,000/- in cash
Querist :
Anonymous
(Querist) 01 January 2012
This query is : Resolved
Respected Experts,
One of my clients have entered into an Agreement of sale to purchase an immovable property and he has to make an earnest advance of Rs. 10,00,000/- to the Vendor. The Vendor wants the payment in cash. My client has the said amount in his s/b account in bank. The amount he got from his relative abroad through an account payee cheque (NRE account). Please explain what he should do? The Vendor ready to acknowledge the payment by issuing a stamped receipt and execute an un-registered agreement of sale on a Rs. 100/- bond paper. What will be the risk involved and how should my client proceed safely? There are other purchasers resdy to pay in cash as desired by the Vendor. Please advice.
V R SHROFF
(Expert) 01 January 2012
PURCHASE OF IMMOVABLE PROPERTY BY CASH IS ALLOWED. sd MUST BE USED OF REQUIRED AMONUT, NOT ONLY rS. 100/- OTHERWISE IN CASE OF DISPUTE, IT WILL NOT BE A VALID EVIDENCE. REGD IS MUST.
AMT MORE THAN 20K WILL NOT BE ISSUE.
Querist :
Anonymous
(Querist) 01 January 2012
Sir,
I am advised that the stamp of Rs.100/- is sufficient irrespective of the value of the property transacted as the un-registered agreement is only to get a regular sale deed executed by the Vendor subsequently on payment of the balance sale consideration and compliance of other conditions as agreed between the parties.
With regards.
Shailesh Kr. Shah
(Expert) 02 January 2012
If your client is engaged in trade of sale-purchase of immovable property then it is barred u/s269SS of Income Tax Act.Otherwise your client do.
prabhakar singh
(Expert) 03 January 2012
Despite all in your case either payment should be a/c payee through bank or if cash is to be paid then the registration of agreement should opted as route otherwise in case of default great difficulties may emerge.
While doing a transaction of these type not only legality but also the nature of risk involved in the very opted modus operandi should be given due weight.
YOGESH NARANG
(Expert) 03 January 2012
m also agree with mr. Shailesh
.
Querist :
Anonymous
(Querist) 05 January 2012
RESPECTED PRABHAKAR SINGH JI AND BURMAN JI,
WE ALL KNOW THAT TO AVOID THE VERY HUGE STAMP DUTY AS IMPOSED BY THE STATE (I HOPE YOU HAVE SEEN THE OBSERVATION OF THE HON'BLE APEX COURT IN A RECENT JUDGEMENT, AS TO HOW THE PEOPLE ARE TAKING OTHER WRONG ROUTES TO AVOID THE UN REASONABLE DUTY AND HOW THE STATE IS PUT TO LOSS OF REVENUE IN PROPERTY TRANSACTIONS) THE PUBLIC IS NOT SHOWING THE ACTUAL SALE CONSIDERATION IN THE REGISTERED SALE DEED. GENERALLY THE SALE CONSIDERATION RECITED IN THE SALE DEED IS FAR LOW THAN THE ACTUAL PRICE. BUT IN AGREEMENT OF SALE THE ACTUAL PRICE HAS TO BE MENTIONED TO AVOID OTHER COMPLICATIONS AS IT IS IT IS NOT A REGISTERED AGREEMENT. IF THE AGREEMENT IS SOUGHT TO BE REGISTERED AGAIN THE SAME WRONG ROUTE WILL HAVE TO BE FOLLOWED. WHEN THERE IS NO DELIVERY OF POSSESSION OF THE IMMOVABLE PROPERTY SOUGHT TO BE SOLD, THE REGISTRATION OF AGREEMENT OF SALE IS NOT MANDATORY IN AS MUCH AS IT ONLY AN AGREEMENT TO GET A REGULAR REGISTERED SALE DEED EXECUTED- AS HELD BY VARIOUS HIGH COURTS. SO IN THE BACKGROUND OF THE ABOVE I HOPE THERE SHOULD NOT BE ANY PROPBLE FOR MY CLIENT IF HE IS OBTAINING A PROPER STAMPED (Rs.1/-) RECEIPT EXECUTED BY THE VENDOR AND ALSO GETTING AN AGREEMENT OF SALE EXECUTED ON A Rs.100/- STAMP PAPER AS I MENTIONED ABOVE.
PLEASE COMMENT.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 05 January 2012
All these problems will vanish after the proposed VAT system comes even in property transaction. It is being delayed due to GST rollout and hiccups due to politics.
BUT IT HAS TO COME NO SOONER THAN LATER.
soumitra basu
(Expert) 08 January 2012
Tell your client to have proper money receipt in printed money receipt book with a Revenue Stamp of Rs. 1. For betterment you can get the agreement on N. J. Stamp of Rs. 10. Though it has no legal value but it has evidenciary value before the court of law. You have to move according to call of the day.
