anupammi

Hi All,

I am trying to buy a apartment in bangalore in the ready to move in apartment complex. I am in private service and wanted to to buy the apartment in all cheque deal. Meaning i do not want to pay anything in cash. But after trying hard i could not get any seller who is ready to sell his without the cash component.

Now i have couple of questions

1) What is usual percentage of cash being asked by the seller?

2) If giving cash is mandatory then how we can make sure that everything goes smoothly. What i am trying to ask where i can be cheated if i give cash.

3) what would be the tax implication when i will sell the same property after couple of years due to the cash component i paid while acquiring it.

4) How safe it is to withdraw big amount like 10 lacs and above and give away to the seller

Thanks in advance to all learned members.

AM

ant19

Safe approach will be to deal with builders directly.
Any reseller will try to minimise capital gains to maximise profit and one way is to take cash component. So it is a common practice. Else you should be ready to compensate partially for tax liability by paying more value.
I did pay cash when I bought flat but the deal went through smoothly. you need to check all documents through builder before making any cash component. Try to do the deal in the presence of third party you believe. Better to finish the entire process in one day.
Best of luck

sachuthanand

When you are buying aproperty you have to take care of certain things

• Location of invesment which will help to to forcast about the returns about the property
• It is better that you go with any builder why because he will help for the expansions in that area as he had invested in that
• And you have to take care while selecting the builders it is very important about the background of the builder it will help you at the time of purchase for smooth dealing and at the time of resale by the good will of the builder
• About the withdrawal of bulck Amount from the bank if you are goi ng with bulck amount you will be getting good amount of discount from them

Thanks & Regrads
Achuth 8123284778

Munish Malhautra

Hi AM,
It is better to give cash as the registration is done on the white component only. if u spend 20L on a property on full chq then u pay almost 3 Lacs as registration , else u pay as per only what u paid in white.
Giving cash is safe as far as the deal is happening with a known company or builder.
let me know if u need more information

rahumish45

Hello reader,
Here is a nice link to an article on black money/ cash component transactions in Indian real estate.
Will black money in Indian real estate transactions last forever?
Do take a look and post your feedback!
Cheers!

triptamittal

Hi Anupammi,

I'm currently in the same situation as you mentioned. pls advice, if you have purchased flat with cash component? what is tax implication in this case?

Cpleus

Oh, that's Great Sir !!