Want to prepay home loan but how to do it

[tusharg]

I bought a resale flat in April 2010 & took home loan for same with a tenure of 25 years & emi of 10000 apprx. Current payoff is apprx. 1150000 inr. My mother-in-law has a source of income from hotel business which runs quite well. She is kind enough to help me in paying off my entire home loan but is willing to provide only cash as she doesn't want to get into tax hassles. How do I prepay this loan to LIC Housing Finance ltd. (Lender) without getting into the tax hassles as LIC will only accept cheque or DD?

Additional info: This is my primary residence & is the only property that I am having in my name. My salary is the only source of income as of now. I don't have any other investments. I seek rebate in tax based on my home loan. I also have other debt like credit cards & personal loan of 1 lac.

[Desi]

I bought a resale flat in April 2010 & took home loan for same with a tenure of 25 years & emi of 10000 apprx. Current payoff is apprx. 1150000 inr. My mother-in-law has a source of income from hotel business which runs quite well. She is kind enough to help me in paying off my entire home loan but is willing to provide only cash as she doesn't want to get into tax hassles. How do I prepay this loan to LIC Housing Finance ltd. (Lender) without getting into the tax hassles as LIC will only accept cheque or DD?

Additional info: This is my primary residence & is the only property that I am having in my name. My salary is the only source of income as of now. I don't have any other investments. I seek rebate in tax based on my home loan. I also have other debt like credit cards & personal loan of 1 lac.

So, you do not want to deposit the cash in the bank because it will be reported and you will have to declare it as a gift from MIL (potential taxes unless she gifts her daughter), MIL then will have to explain source of income and pay appropriate taxes. In other words you are seeking a solution on methods how to rip off GOI and the Indian taxpayers.

[vsudhu]

Back in the days, nationalized banks used to accept cash to make DD's correct. Not there anymore ?