HUKAMCHAND ERODHA (ADMINISTRATOR) 25 May 2023

Purchasing a house

I am 76, was an Ayurvedic Rmp, never paid income tax. Can I purchase a house of thirty lacs showing that the money was saved and kept at home.

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Quick Summary

This discussion explores the possibility of purchasing a £30 lakh house using cash saved at home, particularly for an individual aged 76 who has never paid income tax. The advice highlights that large cash transactions for property purchases can attract income tax scrutiny if the source of funds cannot be proven. Furthermore, cash payments exceeding £20,000 are generally not permitted and considered illegal. An alternative suggestion involves borrowing funds interest-free from a farmer and documenting this with a formal agreement.

4 Replies

Real Soul.... (LEGAL) 25 May 2023

How are you going to make the transaction? if that is cash then that is ok.

HUKAMCHAND ERODHA (ADMINISTRATOR) 25 May 2023

I shall pay cash. Thank you

T. Kalaiselvan, Advocate (Advocate) 25 May 2023

The amount saved by you should have been in a bank as a fixed depoist or in the form of savings bank balance.

If you produce this huge amount as cash for purchse of immovable property without having any proof for the source of income, it will certainly attract income tax.

Besides cash payment for any transaction beyond Rs. 20,000/- is ot permitted and considered as illegal.

HUKAMCHAND ERODHA (ADMINISTRATOR) 26 May 2023

Thankyou

May I borrow from a farmer intrest free in my bank account. Get an agreement on stamp paper or promissory note that the farmer has given me in my bank account for ten years without any intrest.

Thank you sir