10 December 2019
Respected Sir, I want to know regarding Income Tax provisions for the Purchase of Agriculture Land in Cash for the FY 2011-12. we have made payment of Rs. 1600000 in cash for the purchase of Agriculture land . can we show this for income tax assessment case.Please advise w.r.t. buyer and seller perspective.
27 May 2020
Limit of 20,000 for immovable property transactions: CBDT reads discriminatory and peremptory law to ludicrous level
An additional bar was put on cash transactions in excess of Rs 20,000 in section 269SS of the Income Tax Act, 1961 with effect from 1 June 2015
From 1 June 2015, transactions in immovable properties for cash in excess of Rs 20,000 were also barred IT sleuths are gunning after all transactions of cash from 2015 to 2018 on the basis of examination of registered sale deed
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.
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.
CAclubindia
