reg payment to builder

POSTED BY Brundaban ON March 9, 2013 4:10 pm COMMENTS (3)

dear Ahal/manish,

My friend has finalised to purchase one finished flat(ready to move) at Hyd.

The flat costs 36 lakhs, so he decides to pay 12 lakh and remaining to take loan.Pls suggest if paying thru A/C Cheque to builder is fine and will be ok from tax perspective, bcoz his builder doesnt agree to take a/c payee cheques rather cash only or only cheques in his name(builder’s).

Pls suggest which method of payment will be correct from future tax implications?

 

Rgd.

Brundaban

3 replies on this article “reg payment to builder”

  1. gaurav sharma says:

    all in all builder is asking for cash which is his black money.
    you have two options:
    1. withdraw cash money yourself and give it to builder
    2. give cheque to builder without a/c option (which is first option itself if you think)

    you can leave this scheme without thinking twice if you read my answer before buying.
    its my sincere advice dear before you repent.

  2. Brundaban says:

    Thanks Ashal for replying.
    Actually the registered value of the flat in Govt. records is much less than this, around 29 lakhs, on which he has to pay the stamp duty plus regd charges.

    The builder is saying not to pay A/C payee cheques in the name of him rather only to pay cheques in his name without a/c payee option.
    I do not understand his motive.
    Pls let me know what is the cause behind his motive.

  3. Dear Brundaban, Please do not pay in cash. Regarding the cheque payments, it should be in the name of the co. or institution who has developed the scheme. I’m unable to understand why the builder is asking cheques in his own name?

    What ‘ll be the registered value of the flat in Govt. records on which the stamp duty is to be paid? Is it same 36L Rs. or something else? Please confirm.

    Thanks

    Ashal

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