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futureplanner (Others)     12 September 2021

Query on cheque issue to a Payee or Bearer

Hi Sir

I am a buyer doing a property transaction and the seller asked me to issue a cheque on his name keeping the bearer option. He said he would like to withdraw money. 

We have decided to go with 3 separate cheques of 4L, 4L, 3L rupees

Now, the question is, will there be any TDS deducted from my side.

Also, how the payee spends the withdrawn cash, is it traceable or not is his onus correct



 8 Replies

Heet Shah

Heet Shah (Tax Consultant)     12 September 2021

You may issue bearer cheque on sale of immovable property.. 

Heet Shah

Heet Shah (Tax Consultant)     12 September 2021

There is no tds implications on sale of immovable property of upto rs. 10 lakhs

 

Heet Shah

Heet Shah (Tax Consultant)     12 September 2021

The money recd from you would be traced back by the banking system if proper investigation gets carried out.... But it bring no onus on you

futureplanner

futureplanner (Others)     12 September 2021

Sir, I did not receive any money from the seller, I am giving money to the seller. 

And the money am I sending is proper, accountable received from proper sources like employer after TDS deductions

 

Heet Shah

Heet Shah (Tax Consultant)     12 September 2021

Originally posted by : futureplanner
Sir, I did not receive any money from the seller, I am giving money to the seller. 

And the money am I sending is proper, accountable received from proper sources like employer after TDS deductions

 

The source of money upto 10 lakh would not be traced by the department. 

Heet Shah

Heet Shah (Tax Consultant)     12 September 2021

And there is no tds implications on purchase or sale of property amounting to rs. 10 lakh

Heet Shah

Heet Shah (Tax Consultant)     12 September 2021

I mean there is no tds liablity upto 50 lakhs... Ucan issue issue bearer chq to ur seller

1 Like
Avtar Singh

Avtar Singh   13 September 2021

TDS liability arises only when cost of property is 50lac or more .Secondly bearer cheque should not be issued to seller of property for 2lac and more in any way because of section 269.

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