- This topic has 17 replies, 16 voices, and was last updated 1 year, 3 months ago by
.
-
Posts
-
-
DI am renting out my villa in a posh society. My potential tenant who I’m in talks with, has been living in the same society for past 5 years and owns a well know buisness in the city.
We have argeed on a rent of 65k + maintenance but he wants to pay that amount in cash every month.
I wanted to know if this is legal or not and what are the risks involved. Please also mention I need to mention any specific clause in the leave and license agreement of 11 months.
-
FIt is not legal to receive 65K/mo rent in cash. The risk involved include getting penalised by Income tax department for accepting cash payments to loosing your house to someone who squats and decides not to leave. If the tenant can be brazen about breaking the income tax laws, you can bet, they can be brazen about squatting on the property and not handing it back to you. They aren’t bothered about law and order. Avoid dealing with such people.
-
-
S1) He won’t agree to you mentioning this on the agreement.
2) you also have to deduct tds do in cash that won’t be possible. Which attracts income tax authorities.
3) you can’t deposit this in bank without a pan card which again means informing the income tax authorities that you are generating cash.
4) it is straight up illegal to take such amounts to cash.
-
BNAL
There are two issues associated here.
1. Please do due diligence of renting out your property without any documentation of money trail. Please consult with a lawyer if needed to ensure tenant do not end up using this arrangement to their advantage. Talk to previous owner about their conduct.2. Managing the cash payment. I believe to some part you would be able to consume the cash for self use and maintenance payment.. however u need to have someone willing to take cash payment from you. Say – you buy a property which is willing to accept cash or something similar… Talk to a CA …
But like it was mentioned..this approach has associated risk and IT dept can come after you at a future date.. so weigh in the risks and take your call.
-
BNo harm to you. He is not paying taxes to gov.
Since rent is above 50k, he needs to deduct TDS and pay some amount to gov which you have to claim from gov in ITR.
Tell him you will show rent 35-40k instead of 65k on agreement.
-
-
-
-
HMake rent agreement of 35-40k .
Take rest in cash…
Else look for another tenant.
Also get police verification done.
-
-
-
-
-
-
DCA here
65k pm is not a lot tbh use some component from this rental income & your regular income for your household expenses & deposit the rest in your & your family members accounts – 1000x better if you have a current account for your business. Since there won’t be a registered agreement – get some signed cheques from the tenant and or security deposit which covers atleast 3 months rent – ensure deposit is in cash.
-
