sg (housewife) 11 June 2012

Sale agreement & registration

Hi,

I have the following question:

I am buying a property in banglore. Seller wants the guidance value in registration document & rest as black.

I dont have any black money.

bank is ready to give loan on sale agreement.

bank will be giving all money as cheques/DD.

So, how can the seller keep it as black?

isn't all money by bank white?

how does anyone benefit by giving two separte cheques.

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2 Replies

Ajit Singh Cheema (practising Advocate) 12 June 2012

The bank cannot make the payment of loan in black money ,it can only be pure white.The bank can only lend the money as entered in the title deed as consideration money plus registration charges.

Benefit of black money is you may save some registration charges at the cost of converting your white money in to black.The seller may save some tax, at the cost of creating black money

S Jadhav 98336 98330 (Jadhav & Associates) 15 June 2012

Please do not pay money in black. There are many sellers who will ask you for the amount in black but you can insist on all white only. Maybe you will have to pay a little more price sometimes like for registration ,etc.

S Jadhav