About property registration

About property registration

In 2013 my father booked a 2bhk flat and gave money in cash to the builder amount was fully paid and the building was under construction. Unfortunately my father died on 2015 due to heart attack. Now the flat is completed and builder is saying that he will give me money in cash that my father paid him and I have to deposit in bank and give him that amount by cheque to complete registration process and deed of sale. So my concern is that will it create problems for me? . The amount is 20 lacs.
The builder is saying he will give money step by step like 2lacs at a time.
Please advice immediately.Thanks.

Asked 5 years ago in Property Tax

So there will be no problem in paying the money via cheque by depositing the money you receive from builder but the only issue is that you must have some proof to show that from where you deposited such 20 lakh amount in bank?

You must have the source of it.

If you can prove the source there is no issue.

Also now he can't charge you GST as he will show that you have paid money after the construction is complete, so do take note of that.

You can make a consultation session if you want more clarity.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo

CA, Jaipur

4272 Answers

97 Consultations

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Dear Sir,

Hope you are doing well !

It will not create any problem.

Please make sure that everything is properly documented.

Thanks & Regards,

Payal Chhajed

CA, Mumbai

5188 Answers

289 Consultations

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Yes, it will create an issue if someone gets to know about it. Further, if you deposit cash more than 10 lacs in saving bank account, your bank will pass on this information to income tax department.

Its better you discuss these issue in person or at least over a call.

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

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Hi,

- Yes you would be in problem if you will accept Rs.20 lacs in cash in your saving account. Any amount deposited into saving account for more than Rs.10 lacs is being reported by banks to Income tax authorities.

- Please take phone consultation for better view.

Thanks

Vivek Kumar Arora

CA, Delhi

4840 Answers

1037 Consultations

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Hi,

As such there is no problem subject to proper documentation.

However, with the January 17 notification, the CBDT has made it obligatory for a banking company or a cooperative bank to report cash deposits aggregating to Rs 10 lakh or more in a financial year, in one or more accounts (which excludes a Current Account and a Time Deposit account) of a person.

Karishma Chhajer

CA, Jodhpur

2450 Answers

29 Consultations

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You should not accept cash, it may create problem.

You won't be able to justify the source of income.

Lakshita Bhandari

CA, Mumbai

5687 Answers

910 Consultations

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Hi,

It is not advisable to get into this transaction. Deposits exceeding 10 lakhs in any FY in your bank account will surely invite queries from the Income Tax department and you may not be able to justify the source of this cash.

You can get in touch for further clarifications.