Cash transactions in buying a property

it is very difficult. At almost all the state registrar's office at the time of registration PAN number is to be provided by both the seller and the buyer of the property.

i am of the considered opinion that u may Kindly think of any other alternative(property). 

Absolutely no problem.   No constraint in purchasing a property or asset for any value.   What you are writing in documents and what you are disclosing as amount paid should not mismatch.

Hence go ahead.   Regarding the above reply, there is no harm in submitting PAN till the time there is no contradiction.   There is no condition all PAN holders should deal only in bank.

i respect the suggestion provided above but do not agree with it.

you ought to consider the provisions of sec.40(a)3 and the cash balance in your return at the time when it was last filed.

Originally posted by : RAJKARAN
	I am salaried person having gross taxable salary in the range of 20 lakh. I want to buy a property but the seller wants the deal in all cash. The deal amounts nearly 50 lakh and to be concluded in a year. I can arrange that money by selling shares(long term). Please advise me on doing cash transactions without being noticed by Income Tax department.

your query is not clear 

1) registration value is 50 L and the seller want in cash, ( maybe he does not have bank account or so ) 

or 

2) the dealer wants unaccounted money of 50L and make registration at lower / nominal value?

Sec 40(a)(3) is applicable for business expenditures. There too not for assets purchase or capital expenditures. if you read the section you will get the point. He is going to get the cash only now on selling shares, hence no cash in last return. For salaried cases, i am afraid, there is no provision to disclose cash in hand also. So on that point also there is not risk. Hence he can go ahead

I don't see any difficulty in that, although its looking awkward. Had you asked the dealer, the reason for this?? I don't think such a big transaction will go unnotice. And, if you want that, then, I think cash is the right way, if there is any.

first of all who is gonna give cash for sale of shares? it is gonna be routed only through bank (as far as my understanding goes)

 

Second when he gets the cash he is going to withdraw it from the bank as per your advise and hand over to the seller of the property. For a learned person like you, you must be aware that information on huge cash withdrawals travels swiftly to the department through CASS.

 

It is a general practice to perform transactions through bank and pay part or some portion of the amount in cash and not all of it. It is a safe bet and will not invite any unwanted hassles (Just in case)

This is practical solution you will also come to know when you start your own practice. There are so many ways to get not noticed. This is not the place to discuss them open.