Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Penalty levied u/s 269SS or not.

28 September 2019

If a person made payment of 3 lakh in cash for puchase of a land and land belongs to two joint owners. Does it amounts to contravention of section 269SS of income tax act.

Reply
Follow
Share

3 Replies

Sukhleen Kaur (20 Points)
Replied 28 September 2019

If this land is not agriculture land then there is obligation of 269ss

Upgrade to CAclubindia Pro. Subscribe Now!

Kapadia Pravin (17254 Points)
Replied 28 September 2019

Actually it is 269ST and not 269SS

Section 269ST in the Income Tax Act bans such transactions in cash amounting to Rs 2 lakh or more on a single day, in respect of a single transaction or transactions relating to one event or occasion from an individual

In your case two joint holders contribute 1.50 lakh each so I think there is no contravention of 269ST and therefore no penalty.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 29 September 2019

1. Sec 269ST puts restriction only with respect to cash transaction in excess of Rs. 2 lakhs per day to a single person for a single transaction.
2. In your case, if you are making payment to joint owners where payment is less than Rs. 2 lakhs per person then sec 269ST will not be applicable.
3. In such a case, the penalty will not be applicable u/s 269ST.
Please correct me if the above solution has an alternative view.