Income tax to be paid by different person other than assesee

In my opinion : 1) not valid, you are liable for your income tax not anybody else. 2) s. 138 holds only for legally enforceable debt. That not being the case here you will not have recourse to it if the cheque bounces. Better to make rough calculations to include the tax amount in the sales price itself and make an agreement to cover the shortfall if any by means of a cheque. That will reduce your risk.

Do not accept Cheque.  Because if the cheque is dishonoured, you have to file a civil suit to cancel the sale deed.  This creates complications.  Instead of that take DD or pay order or cash.  And also take an additional Income tax applicable as per the consideration amount. 

thanks a lots, guys.

what i was now thinking is that the prospective buyers and a relative of mine enter into an agreement for termination of tenancy as applicable in the state of goa. Condition for termination shall be payment by way of PDC, which amount shall be the tax amount.  the prospective buyers have agreed for this.

i think that this is a better way. the tax comes to about 1cr which the the prospective buyer does not have right now. he intends to make and sell plots annd raise money.

kindly advise.

You may be having different strategies for sale of properties and payment of taxes suffered on it but it will not fetch you the legal relief, you will be held liable for wrong issues that may develop.  An individual has to pay one's tax and a third party cannot be asked to pay it or make an alternate arrangement for that which will be an illegal transaction.  Consult a local consultant and proceed further.