agriculture land sale

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Shankar Ghangale (Querist)
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23 April 2017 if i sale agriculture land of 20 lakh rs and took full payment from buyer . the payment recieved cash. can i take all payment is cash or not

Sumeet

Sumeet (Expert)
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23 April 2017 w.e.f 01/04/2017 no payment exceeding 2,00,000 should be recieved in cash by virtue of section 269ST. There is no exemption given for sale proceeds of agricultural land. Hence, you should not take payment in cash since heavy penalty have been proposed for violation of 269ST

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 October 2021 An additional bar was put on cash transactions in excess of Rs 20,000 in Section 269SS of the Income Tax Act, 1961 (the IT Act) vide Finance Act, 2015, with effect from 1 June 2015. Prior to that date, transactions in loans and deposits in excess of Rs 20,000 in cash were barred. From 1 June 2015, transactions in immovable properties for cash in excess of Rs 20,000 were also barred.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 October 2021 It is significant to note that agricultural land is as much hit as any other immovable property but the proviso to Section 269SS makes a volte face by saying if both the purchaser and seller are having only agricultural income and no other income taxable under the IT law they would be spared from the compliance of the whole Section. Be that as it may, others flouting this Section would be punishable with a penalty equal to the amount of cash transaction even if the excess over Rs 20,000 is just Rs 100. Section 271D makes it mandatory on the joint commissioner of income tax to slap this penalty without any leeway or exemptions.