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Agricultural land sold in Cash

Neeraj Sharma (Accountant) (285 Points)

03 October 2020

Dear All,

if the agricultural land was sold in Rs. 28 Lacs out of which 20Lacs received by cheque and 8 lacs cash deposited by buyer into seller account.

what will be impact on income tax . Please help to clear..

Thank you

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7 Replies

Santosh Hegde (133 Points)
Replied 03 October 2020

Agricultural land is not a capital asset as per Capital gains provision so no tax impact will be there on the transaction whether it's cash or bank transaction..

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ayusmita (Tax consultant) (5885 Points)
Replied 03 October 2020

No impact on income tax as it is not a capital asset

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 04 October 2020

Can not Receive/accept 2 lakh or more in Cash..
Section 269ST attracted
Penalty 100% of Amount received in Cash.

Neeraj Sharma (Accountant) (285 Points)
Replied 05 October 2020

Cash was directly deposited by Buyer... Did not receive any cash... Please advices

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 05 October 2020

Both are same....it's not allowed

what is agreement value ..it's 28 lakhs or 20 lakhs ?

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Neeraj Sharma (Accountant) (285 Points)
Replied 06 October 2020

Sagar patel Ji... ₹28lacs in all documents/ transfer ownership doc..

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 06 October 2020

Than sir it's not allowed..
Section 269ST of income tax, 1961 attracts.
Seller can not received Rs. 2,00,000 or more in Cash (Cash deposited by buyer also considered as cash only).