payment by cheque

Querist : Anonymous (Querist) 17 December 2010 This query is : Resolved
I want to purchase a property for which I want to make an advance payment of one lakh rupees. but the seller does not have a bank account. His son has a bank account. the draft of agreement of sale is ready. can i make the payment by cheque to the seller's son. or should I give cash and take a receipt from the seller. according to income tax laws, what is the threshold for making cash payments? Thnaks in advance.

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A V Vishal (Expert) 17 December 2010
You can either pay to his son and the same must be mentioned in the agreement and be acknowledged by the vendor or you may make the payment in cash and obtain a stamped receipt. Since the payment is for purchase of a fixed asset there is no bar on making the cash payment.