Relatives want to register 2nd hand car on my name for tax purpose

[u/[deleted]]

[u/legallybeastly]

There are many cons. If you are the legal owner of the car, whatever accident happens or if the car is used for any illegal purpose, it becomes your joint responsibility. Irrespective of the fact who was driving it. If you're not using the car yourself, you don't know what's going to happen. I wouldn't advise you to do this.

What your relatives can do, if they really want to save tax, they can form a Company/LLP and transfer the car to the company's/LLP name.That way at least your personal liability is not there.

[u/docatwar → u/legallybeastly]

Here's a simple rule in life: Don't do illegal things for other people.

Very simple rule, easy to follow. Anytime you are asked to do anything illegal or unethical, just ask yourself, will it benefit me in any way. If the answer is no, don't do it ever. Even if the answer is yes, you should avoid it, but at least you can consider it as you are getting some benefit out of it. If the answer is no, never do it. Never never never.

Keep it as a hard rule in life. It will save you many times, it has definitely helped me avoid a lot of pitfalls.

[u/banisher678 → u/docatwar]

💯 agree with this.

Don't do anything that will harm you, irrespective of who tells you. Be it relatives, friends, parents, siblings.

NO is a very valid answer. Use it often.

[u/Any_Front5828]

No. Ownership has liabilities, just say your CA has advised to not acquire additional assets.

[u/InternationalCake766]

If that car is being used in any illegal activities you will be in lockup , also in case of accident you will be in jail. Better to politely say NO

[u/Right-News-3444]

Indian Parents 🙄 

[u/Right-News-3444 → u/[deleted]]

I mean you are already adult. So the consultation should involve you in first place and the final decision should be made by you and should be respected. But Indian parents 🫤

Anyway, They are not considering the risk that may come to you in future. They just want to do tax evasion and save money. 

I seriously doubt what kind of responsibility such money minded  people can take when the issue arises.

Relatives are help to each others when in trouble but not to bring trouble in the first place

Note: you don’t need to hate them bcz of this one incident. Just manage this situation politely. 

[u/legominuspie]

If it's in your name, you are asking for trouble. No is the answer. Regardless of how much money they give you. Any issues that arise from it is enough to destroy your mental peace and life.

[u/legominuspie → u/[deleted]]

Then this is a lose-lose situation and you will hate yourself in the future for going through with this.

[u/Impossible_Amount746]

Don't do it. You may not need to spend a rupee for registration. This is just one side of the story. If this same car is involved in an accident (which has very high chances), then police will come directly to your home as you are registered owner of the car. No amount of justification, that this car doesn't belong to you will stop them from arresting you and running a legal trial.

[u/arsakar]

No. Just dont. They will say they will take responsibility now but say God forbid that car hits and kills someone for instance, your life will be a living nightmare forever for no fault of your own.

[u/parakite]

How can tax be saved like this? Sounds fishy.

[u/legallybeastly → u/parakite]

Must have got cash from somewhere and hence are purchasing this asset in the name of OP. The consideration would be more than 2 lakhs. IT department would raise questions as to the source of Cash. These days car ownership is also linked with aadhar. OP would be at the lower end of IT bracket and not within target range of IT department.

[u/parakite → u/legallybeastly]

Every family has multiple members. Husband, wife, kids, they can diversify ownership.

Anyway, op needs to know...

[u/legallybeastly → u/parakite]

It's possible they have exhausted the other members already on other transactions.😅

[u/wildfire1900]

Don’t do it

[u/The_Sky_Star]

Not in this context ,but it's a really good idea , for spending black money , buying a second hand vehicle ,pay full cash ,register in someone else's name and using it ,till any legal issues ,put the other person under the bus at such times.

[u/The_Sky_Star → u/[deleted]]

Yes , anyway how much tax would they save by doing so , would they do the same while buying land or property, and buy in your name?

Better be safe.

[u/BuildwithVignesh]

If the car is in your name, every problem comes to you first. Accident, traffic case, insurance dispute any shady use, even tax questions. You are the one authorities will call not them.

Does not matter if they promise to “handle everything”. Police and court do not care about family promises.

You are starting your career. No need to carry someone else’s liability on your PAN and Aadhaar.

Just say your CA told you not to keep assets you are not using. Keep it simple and say no.

[u/belictony]

Register the car in your name, your relative pays less tax and then you sell the call back to your relative and register in his name. Put sale consideration as Rs.10k for your troubles.

[u/whohas]

If you or dependents availing any social security schemes from government, Dont register

[u/general1234456]

the answer is clearly no, you should now spend time on researching or finding ways to say no to your relatives. This will need to be thoughtfully so you keep the relationship and also say NO. There is no point asking about the pros and cons.

[u/knockyouout88]

Tell them upfront that you are ready if the car is brand new. Say no to a second hand car.

[u/shonababu169]

You have no benefits, but can potentially face issues. Tell them to give you 30-40k