How to deal with cash in case of property purchase
Anil Jaiswal
(Querist) 22 August 2013
This query is : Resolved
Dear Sir’s
I am buying a residential flat in Guwahati, Assam, working in a Public Limited Co. is seeking you some words of advice.
First of all few basic things I want to say, I have joined this Company in January, 2013 only and this is my second job. I would be buying this flat in my name only and my parents would be helping me monetarily. As a matter of fact, with my very small career, I don’t have enough white money to finance it but then also I will be managing it around to Rs. 5 lakh. The cost of the flat (including Stamp duty, etc.) would be around Rs. 35 Lakh, of which Rs. 20 Lakh would be from our own resources and the rest would be from Banks. The flat would be ready for possession by nest year Sept, 2014. The cash component is payable according to the progress of the construction work.
Now the problems:-
As I said I have recently started my career and will not have enough cash to finance it all apart from 5 lakhs , the rest would be given my Father ie 15 lakh (20 lakhs -5 lakhs). The problem lies is in 15 lakh, how do I take that amount in my account and pay to the Builder.
My father has a small business and he don’t have money in white. So how and under what method can he transfer money to me to for purchasing the flat.
Please suggest.
Thanking you
ajay sethi
(Expert) 22 August 2013
dont make cash payment to builder . all payments by cheque if possible . you father can transfer funds to your account . give you as gift
Anil Jaiswal
(Querist) 22 August 2013
Thanks Sir for the valuable suggestion. Can u guide me if I receive money from my Mother, which is her own savings, though she has not filed UT returns for years, what will be the procedure of transfer.
If my father gives me the money as gift , will it have any tax burden on him, though the source of his own income is not disclosed?
Rajendra K Goyal
(Expert) 22 August 2013
You can arrange more loan from Bank.
There is no gift tax burden.
Better for all your accounting procedure contact a CA or tax consultant who will advise you on all aspects after going through documents and information provided by you.
