Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Cash Payments to builder

Shashank S Gore (Audit Accounts & Tax Consultant) (48 Points)

14 September 2021

I am purchasing a flat and the builder has asked for certain payment in cash. for said purpose I have transferred 2 lakhs each in my relatives account. Will those transactions attract any income tax provisions?

Reply
Follow
Share

8 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 14 September 2021

Not taxable

Upgrade to CAclubindia Pro. Subscribe Now!

veerendar singh (tax consultant) (3301 Points)
Replied 14 September 2021

You may give cash directly to the builder without depositing in relatives accounts

Shashank S Gore (Audit Accounts & Tax Consultant) (48 Points)
Replied 14 September 2021

I have to pay 25 lakhs in cash and as per income tax act any cash transaction above 2 lakhs is not allowed

veerendar singh (tax consultant) (3301 Points)
Replied 14 September 2021

As per the act cash payment of more than 20,000 is not allowed

sabyasachi mukherjee (27574 Points)
Replied 14 September 2021

Pls ensure the title of the property.
It is advisable to pay money from the owners savings account/ current account
When you deposit money to relatives account if it's a blood relation there are other complications.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

veerendar singh (tax consultant) (3301 Points)
Replied 15 September 2021

Consult an expert for comprehensive advise.

1 Like