14 June 2019
My friend is selling his residential property in village for Rs 20 Lacs and intends to purchase a house in urban area Rs 18 Lacs on NOTARY. The seller is asking the money in CASH only. My questions are : (1) Would he be able to claim exemption U/s 54F (As it is a notary and not a registry) (2) what would be the implications to him as he is withdrawing cash from his bank account and paying in cash.
Kindly suggest urgently as he wants to close the deal early.
14 June 2019
Such deals are not advised. 1 54 exemption not available as there is no registered sale. 2 100% penalty leviable under section 269ST for cash payment.
CAclubindia
