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Ramesh (PARTNER)     13 September 2016

Cash receipt

sir as a seller of property i received a cash of more than 20000-00 thro cash as an advance by executing a agreement of sale , where in purchaser wants to pay part by the way of cash and part by the way of cheqe.after that i came to know /realised theat as per the present norms of income tax above 20000-00 is not permited. as a seller what shall i do? go for executing supplemental agreement,by; cancelling the existing agreement by repaying the cash received?

The amount is more than 10 lakhs 



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 2 Replies

Nitish Banka (lawyer)     14 September 2016

A consideration can ne recieved by cash do register the agreement

G.L.N. Prasad (Retired employee.)     14 September 2016

 You can  issue two receipts with two different dates.  If any one of you are agriculturists this rule may not apply.  Further the amount of ceiling is over Rs.25,000/-.  There is no need for going into supplementary agreement if such cash payments are mentioned with such cheque no for additional payments made.

However there are complications involved in such sale due to capital appreciation, and it is always proper to contact a Chartered Accountant and the fees are very very nominal and you can rest assured and sleep peacefully if accounting is properly ensured.


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