How To Receive Money From Buyer: Cash / Cheque / DD?

[rajesh_nk22]

Hi guys!

Posting on behalf of my friend, he is selling is car for 1.10 lacs, the buyer wants to pay him by cash. Is there any problem in this? Should he ask for cheque or DD ?

 

[Akash1886]

Rajesh, As such there is no issue in accepting cash from the buyer but a Cheque or DD is helpful in showing the income source at the time of IT return filing. Afterall, the money from the sale would be deposited in the bank account only. So it is just a wise suggestion to accept a DD/Cheque.

Regards

Akash

 

[Nairrk]

Are he going to buy another car and using this money as down payment? If yes, then better to take the money either by DD or bankers cheque (incase personal cheque get bounced then unwanted problem..). Or else if he is going to use the money for some other purpose (not depositing in the bank account), then even Cash will be okay.!

 

[rajesh_nk22]

50% of it will be deposited in the bank towards housing loan repayment. Is it illegal to accept cash payment for 1.10 lacs? Anyways, he will be showing in his accounts that he sold his car.

Regarding DD, buyer is reluctant for this options for two reasons:
1. Don't want to pay DD charges.
2. He doesn't have time, he is trying to transfer registration in few minutes.

 

[Nairrk]

50% of it will be deposited in the bank towards housing loan repayment. Is it illegal to accept cash payment for 1.10 lacs? Anyways, he will be showing in his accounts that he sold his car.

Regarding DD, buyer is reluctant for this options for two reasons:
1. Don't want to pay DD charges.
2. He doesn't have time, he is trying to transfer registration in few minutes.

Since your friend will be showing the amount in accounts, he can even collect the amount in cash and deposit in bank account (In anycase 50% going as loan repayment) or account it for other purchases....!