Sale of a flat

Hi,

It is adviasble that take the both cheques from buyer's name only.

It is advisable that you take the cheque from the buyer. However if the agreement contains the details of the cheque, i dont see a major issue for you.

Regards,

Nikhil

There is no problem.

Hi

It's advisable that the relative first transfers the amount to buyer and then buyer directly issues the cheque to the seller.

Hi,

Hope you are doing well !

No, there is no problem from income tax point of view.

Thanks & Regards,

Payal Chhajed

Ideal scenario would be to take money directly from buyer account.  IN case money is coming from third party, it is fine, you may insert a clause in agreement to that extent.  SInce, you are offering the entire amount to tax, it should not be a problem.  

As far as income tax goes if in the agreement you mention that you have received such sale consideration by this cheque from buyer relative then there will be no problem in income tax.

To keep it straight I would suggest that buyer should take such cheque from relative in his account and then pay you.

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

Thank you

In  this case, your relative had paid the amount on behalf of you.... i.e. instead of paying you and then you will pay to seller.. he/she had directly paid the same.

So buyer has to decide the nature of transaction he has to keep with his relative.. whether it is gift (exempt in case received from relative as per income tax act) ? and no need to return the same to your relative.

How ever if its not a gift transaction but unsecured loan transaction then you have to show the amount payable to your realtive in your balance sheet.

So if you consider you transactoin as per aboven no problem in income tax..

More can be clarifed once the amount in question is known.

Hi

No problem in paying from other sources.

Ideally all payments to be showm in name of buyer. But in such case agreement usally contains all details of payment like chq no,issuer name ,etc so no problem.

Hope it helps.