Cash payment of rs.10 lacs for purchasing house

get MOU SIGNED, ON STAMP PAPER C NOTARY, SHOWING YOU RECD POSSESSION, ON FULL AND FINALK PAYMENT BY CASH OF 10L. GET VIDEOP RECORTDING OF TAKING OVER POSSESSION, IN WITNESSES, AND CONFIRMATION, THAT HE VOLUNTARILY & WILINGFLY GAVE POSSESSION, AND ALL RIGHTS. EXECUTE NORMAL SALE DEED, REGISTER IT WITH PAYMENT RECEIVED OF 10L . ONCE POSSESSION IS YOURS WTH REGD SALE DEED, U NEED NOT WORRY. 

get MOU SIGNED, ON STAMP PAPER C NOTARY, SHOWING YOU RECD POSSESSION, ON FULL AND FINALK PAYMENT BY CASH OF 10L. GET VIDEOP RECORTDING OF TAKING OVER POSSESSION, IN WITNESSES, AND CONFIRMATION, THAT HE VOLUNTARILY & WILINGFLY GAVE POSSESSION, AND ALL RIGHTS. EXECUTE NORMAL SALE DEED, REGISTER IT WITH PAYMENT RECEIVED OF 10L . ONCE POSSESSION IS YOURS WTH REGD SALE DEED, U NEED NOT WORRY. 

There is nothing wrong in paying cany amount in cash for purchase of property. Insist that you will pay only at the time of registration of Sale Deed before the Registrar. Pay before him and get it mentioned in the sale deed that entire consideration has been paid in cash before the transfering authority. Now it is fully secure and you need not worry for any thing.

Adv C P Chugh

cpcservices@gmail.com

91-9971124526

If there is a record of receipt of the cash, you are safe. If not, you take several risks. (a) Denial of such receipt and (b) involvement in 'black money' transaction are among the first that come to mind.

cash is to avoid tax tracking and evasion...
better deal in cheques...

nothing wrong to deal in cash but dont ask for unseen problems... only once you are in you realise there is no undo button...

nothing to worry and i agree fully with Sri C.P.Chugh SIr and also what shroff sir sugested can adopted but it's only a small amount hence depends upon your convinience and if you are to follow Chugh Sir then do not forget to mention the same in the Sale deed that part or total sale consideration is handed over at the time of the registration in the presence of the registering authortiy.

all the best.

anand.

nothing to worry and i agree fully with Sri C.P.Chugh SIr and also what shroff sir sugested can adopted but it's only a small amount hence depends upon your convinience and if you are to follow Chugh Sir then do not forget to mention the same in the Sale deed that part or total sale consideration is handed over at the time of the registration in the presence of the registering authortiy.

all the best.

anand.

There may not be any problem in making the payment  in cash ,subject to the condition that the same amount is mentioned as consideration for sale in the sale deed and the amount is accepted by the seller before the Sub Registrar.Actual problem arises where the seller wants to put lesser consideration amount in the title deed  than the amount being paid. In that case the Aquisition proceedings by the Income Tax Department may play havoc with the innocent purchaser.

in generral there is nothing wrong to pay in cash but you need to be extra vigilant and cautious as regards the actual handing over of the cash and its timings and also the taking over of teh actual possession of the house. you would need to insure yourself by leaving no loopholes as advised above so that there is no repentence at a later stage.

Sections 271D and 271E of the Income Tax Act prohibits acceptance or repayment of loan or deposit of more than Rs.20,000/- in cash. As the intention is to check black money it can apply to any transaction between private parties. It is not advisable to transfer cash in front of the Registrar. The Registrar may not even accept that.

Generally in most property transactions part of the money is paid in black. But what is paid by cheque only will be shown in the transfer deed. Also such amount should be reasonable in relation to the market value of the property.

According to me paying the whole amount in cash only is not desirable. That is done mostly in films and TV serials.  Also if the buyer of  the property is asked to show the source of income for the purchase, what will  do?  He will have to show corresponding bank transactions. Beyond 6 years one may not be asked to show accounts and bank transactions. But sometimes 6 years can be too long.  Also at the time of registration of the deed, both the seller and the purchaser will have to furnish their respective PANs and the transaction with the PAn's would be posted on the internet. It will be available for the income tax department. When they assess the person's  income tax return they may view the transactions also.  If they suspect, they can call the person to explain.

Hence it is not desirable to pay the whole amount by cash only. Whatever  shown in the sale deed should be paid by cheque only.

There is a saying. How to catch a stork? You place a ball of butter on its head. The butter will melt in the sun and blind its eyes. Then go and catch it. Some of the suggestions above are like that.