Regarding 269 ss of income tax act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 One of my friend wants to purchase a land but the land owner wants the consideration in cash can he as a payer has been penalised for this transaction also

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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28 July 2017 No he can't.....

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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28 July 2017 What is sale consideration in this regards.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 Sale consideration is Rs. 3,50,000 approx

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 Can any penal actions be taken against payer??

RAJA P M

RAJA P M (Expert)
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28 July 2017 What is consideration...? The buyers also want consideration for rates. How to seller want consideration...? I think you are wrongly asking your query....!

RAJA P M

RAJA P M (Expert)
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28 July 2017 In your view, the seller want cash for without documents....! Am I Right...?

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 Yes u are right seller wants cash in this case can buyer be penalised or not??

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RAJA P M

RAJA P M (Expert)
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28 July 2017 The penalty came based on your documents. If no evidence then can't fall any liabilities. If evidence is your hand then both are missing that they can fall penalty... So, in my view this not good....

RAJA P M

RAJA P M (Expert)
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28 July 2017 Bcoz, Buyer can't show the asset value is actual. Then it's value is going down as per documents......

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 I want to know that Penalty will be levied on buyer or seller???

RAJA P M

RAJA P M (Expert)
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28 July 2017 The mistake ll be found by department penalty ll be levied both parties.... Exactly said Buyer.... Bcoz, He purchased the land for Unaccounted cash.....

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Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 But if he prooves his source of income then??

RAJA P M

RAJA P M (Expert)
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28 July 2017 What is proove....? 🤔

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 The question is that my friend took loan for purchase of land pricing 350000 and the seller doesn't want to take cheque or draft he wants all money in cash then if I.T department inspects then penalty on violation of 269 ss will be levied on buyer or seller??

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RAJA P M

RAJA P M (Expert)
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28 July 2017 Now only you quote the word of "Took Loan"

RAJA P M

RAJA P M (Expert)
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28 July 2017 Also you said Consideration is Rs. 350000/-. You can't said land value before.... Why ask different and Different ways....?

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 Personal loan of the said amount for purchasing land

RAJA P M

RAJA P M (Expert)
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28 July 2017 You can ask it Your 1st query then also you get reply earlier from CA Rashmi Gandhi madam...

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 Plzz reply penalty will also be levied on buyer for payment of more than 20000 in cash or only on seller who accepts the cash

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2017 Raja Sir plzzz reply

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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29 July 2017 Penalty will be levied on both.

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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29 July 2017 On seller u/s 269SS & on buyer u/s 269ST. Penalty shall be imposed on both equal to amount if cash involved in such transaction.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2017 Madam but it is mentioned in 269 st is that no person shall receive an amount more than 2 lakhs in cash ??

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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29 July 2017 Sorry 269SS is for buyer & 269ST for seller

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2017 In 269 ss also it is mentioned that no person shall take or accept more than 20000 in cash in transfer of immovable property??

RAJA P M

RAJA P M (Expert)
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29 July 2017 Yes...
If above Rs. 20000 ll be paid/received anyway its restricted under Income Tax.
So, adviable The cash transaction ll avoid is better...
If not the documents value is less and pay balance cash as suspense