property purchase

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jas (Querist)

02 August 2017 please advise I want to buy a residential plot. plot value(Government Rate) 410000 . can I pay 220000 by cheque ..190000 by cash (I will withdraw 190000 from bank) ..is it ok ? because seller don't want all by cheque.

RAJA P M

RAJA P M (Expert)

02 August 2017 Seller need cash then what is the document rate. Bcoz, Seller don't want bank payment then he wants the cash as suspense or real....

jas

jas (Querist)

02 August 2017 document rate sir,.. mean stamp duty ? or what? seller have power of attorney .he purchased from third person by giving cash. so he don't want all by cheque.

Anand

Anand (Expert)

02 August 2017 There is no problem in making a payment in cash below Rs. 2,00,000/-. In fact as a purchaser you can make the payment in cash even higher, but the recepient is supposed to pay the tax for cash payments above Rs. 2,00,000/-
As long as the entire value is captured in the agreement i dont see any problem.
Now, going by your question, it appears that the seller not wanting everything by cheque, means that he does not want to disclose the said amount. It would also mean that your agreement would be for a value of only the cheque amount.
As a buyer this would mean that you are paying stamp duty on lesser amount. Your cost of acquisition will also be considered lower by that much amount which is paid by cash but not appearing in the agreement.
For the seller this would mean that he is paying less taxes or claiming a higher loss on sale of the plot, as the case may be.
i have given you all the information to help you make an informed decision.

Message likes : 1 times

jas

jas (Querist)

02 August 2017 thanks sir :)

jas

jas (Querist)

02 August 2017 I will show 410000 property value in agreement (registry )

Anand

Anand (Expert)

02 August 2017 Since Government Registered Rate is 410000, even if you dont put that in agreement, stamp duty will be charged on 410000 only.

jas

jas (Querist)