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Can I buy a property in cash?

24 September 2020

I want to buy a property in cash is there any issues under income tax act and if cash is black money can we convert it into white money.

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8 Replies

damodar sarda (CA Practice ) (184 Points)
Replied 24 September 2020

Yes but it should be for less than 2 lacs. 269ST.
You cannot make advance payment of Rs. 20000 or more. 269SS.
Depreciation will not be allowed in respect of cash component.

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Mukesh Parmar (29 Points)
Replied 25 September 2020

Amount of property is 25 Lacs around then can I use it for buying that's black income completely.

sabyasachi mukherjee (27529 Points)
Replied 25 September 2020

It's difficult...
As such nowadays.

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 25 September 2020

@ Mr. Mukesh Parmar
You can not buy Property by giving total value in Cash. If you are making agreement of Property, than that total agreement value you have to pay in cheque only.( Yes, less than 2,00,000 in cash allowed).
So, if you purchase Property for Rs. 25 lakh, but agreement is of Rs. 15 lakh, than required to give 15 lakh in cheque and 10 in Cash.

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Mukesh Parmar (29 Points)
Replied 25 September 2020

Thanks Sagar for valuable suggestion

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 September 2020

Most welcome.....

sabyasachi mukherjee (27529 Points)
Replied 28 September 2020

Cash in 10 lacs can be paid only if u spread the payment in cash over 6 days.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 28 September 2020

@ Subyasachi ji

Cash in 10 Lakhs can not be paid, whether you spread the payment in cash over 6 days or any number of days, because it's relating to single transaction.(i.e property)

Yes, you can give in "black" any amount.