[Kosfactor]

We don't know the exact scene what happened in that showroom but certainly the dealership & brand is to be blamed for letting this blow up.

Now for those who like to walk into someone else's well appointed office in sleep wear or home clothes - Please ask them to bring the vehicle to the comfort of your home instead. They are in your property, at your convenience. They have invested their time and energy in coming to your place and certainly would like to make a deal rather than you being treated as a window shopper.

[AkhilR]

Anand Mahindra responds

[adisan]

Further updates regarding this incident in a recent news report from ToI.

[Mortis]

Isn't it illegal to make such large cash transactions ? No one seems to bothered to report that.

[Kosfactor]

Originally Posted by Mortis

Isn't it illegal to make such large cash transactions ? No one seems to bothered to report that.

Isn't it idiotic to have such rules?

If I have the money I can pay,why should I worry about income tax department if my books are clear , in here it's a farmer too who is buying a pickup truck, ideally noone would care one bit in a normal situation.

Cash purchase of vehicles is very common because farmers and small business owners don't get pre approved car loan like salaried employees do and many farmers don't have bank accounts either.

Just want to add that it is not Illegal to pay cash for anything.

[Mortis]

It's great that some people can play around with a decent chunk of cash with no consequences.

[Sran]

Originally Posted by Mortis

Isn't it illegal to make such large cash transactions ? No one seems to bothered to report that.

It's not illegal. You can buy anything at once if you can pay. Why would it be illegal? I bought Dzire in 2019 in cash. Just furnish the PAN details where required, like buying a car.

[nandrive]

Originally Posted by Kosfactor

Isn't it idiotic to have such rules?

Cash purchase of vehicles is very common because farmers and small business owners don't get pre approved car loan like salaried employees do and many farmers don't have bank accounts either.
.

Bit out of topic but I have to tell the truth, farmers do get loans for car purchase, sometimes with attractive interest. They do have bank accounts that's where the subsidy is paid and loan waiver happens. And how do I know it? We purchased our first car through one of such car loan schemes.

[Trapezio]

Originally Posted by Mortis

Isn't it illegal to make such large cash transactions ? No one seems to bothered to report that.

The answer is an emphatic no. What is illegal is if the sources are devious. Each note is signed by the governor who represents this nation as follows:

"I promise to pay the bearer the sum of One Hundred Rupees". This is a commitment which doesn't have any conditions. There is no asterisk next to it. If this commitment is not met, RBI itself loses its credibility.

Sorry, to go off-topic.

[hdus001]

A google search shows there is a limit of Rs 2 Lakhs for cash transactions. Is there an exemption for car sales?

[giri1.8]

Originally Posted by hdus001

A google search shows there is a limit of Rs 2 Lakhs for cash transactions. Is there an exemption for car sales?

As far as I know, cash transactions above 50k needs our PAN card as proof, companies rarely accept anything more than 2L, which is said to be limit as you said. Days of getting a car with 10L rupees cash on table is long gone!

[Mortis]

Originally Posted by hdus001

A google search shows there is a limit of Rs 2 Lakhs for cash transactions. Is there an exemption for car sales?

Exactly. Even I was under the impression that Legal cash transactions were capped at 1-2 lakhs. I haven't dealt in cash in larger amounts so I'm unaware of any other conditions that apply. Is there any upper limit then on cash transactions ?
Apologies for derailing the thread a bit, was just looking for further information. Mods kind delete this if required.

[thanixravindran]

Originally Posted by Mortis

Exactly. Even I was under the impression that Legal cash transactions were capped at 1-2 lakhs. I haven't dealt in cash in larger amounts so I'm unaware of any other conditions that apply. Is there any upper limit then on cash transactions ?
Apologies for derailing the thread a bit, was just looking for further information. Mods kind delete this if required.

Here is the link from the Income tax website which gives a flyer on details on restriction of cash payments - https://www.incometaxindia.gov.in/Bo...ransaction.pdf

Yes, there are curbs and fines on cash transaction beyond 2L by any person.

[Mortis]

Originally Posted by thanixravindran

Here is the link from the Income tax website which gives a flyer on details on restriction of cash payments - https://www.incometaxindia.gov.in/Bo...ransaction.pdf

Yes, there are curbs and fines on cash transaction beyond 2L by any person.

So then it does seem that buying a car fully in cash is illegal ? I'm not 100% sure from the jargon used in the pdf.

[thanixravindran]

Originally Posted by Mortis

So then it does seem that buying a car fully in cash is illegal ? I'm not 100% sure from the jargon used in the pdf.

Yes, it is indeed not possible to buy a car fully by cash. Most dealership price list or quote itself specifies this. You can do Cheque/DD/NEFT/RTGS which leaves the trail.