17 November 2021
One of my relative sold agricultue property on Kurnool dt AP and consideration of Rs.2.5 lacs accpeted in cash and the same is mentioned in the sale deed.Pleas inform me the consequences as per IT rules.
17 November 2021
Penalty for failure to comply with the provisions of section 269SS of IT act..... As per Sec. 271D. (1) If a person takes or accepts any loan or deposit [or specified sum] in contravention of the provisions of section 269SS, he shall be liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit or specified sum so taken or accepted.
In the referred case penalty upto Rs. 2.50 lakhs can be imposed.
17 November 2021
EXCEPTION: Provided further that the provisions of this section shall not apply to any loan or deposit or specified sum, where the person from whom the loan or deposit or specified sum is taken or accepted and the person by whom the loan or deposit or specified sum is taken or accepted, are both having agricultural income and neither of them has any income chargeable to tax under this Act.
18 November 2021
Agreed, AO may choose to levy penalty under either section. Explanation under sec. 269SS ..... (iv) "specified sum" means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place.
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