Transactions above Rs 20000 are to be done via cheque or other modes of transfer.
Section 271D makes it compulsory for the joint commissioner of income tax to charge this penalty without any leeway or exemptions.
On June 1, 2015, transactions in immovable properties for cash over Rs 20,000 were banned. The government made these changes to stop black money. Reportedly, changes were also made in 269T, 271D, and 271E of the Income Tax Act. According to section 269SS, if a person is involved in transactions in immovable properties for cash more than Rs 20,000, they will be subjected to a 100 percent penalty. As part of the fine, they have to deposit the entire proceeds of the property sold to the Income Tax department.
Section 271D makes it compulsory for the joint commissioner of income tax to charge this penalty without any leeway or exemptions.
Section 269T of the Income Tax Act
This act prohibits an individual from repaying the deposit or specified sum, or loan. It can be repaid by a bank draft of an account payee or account payee cheque via the electronic clearing system of a bank account. The repayment can be done only under these conditions-
The deposited amount of the deposit or loan, including the interest amount, is Rs. 20,000 or more, or,
The total sum of the deposit, adding the interest amount held by an individual in their name or with some person, is Rs. 20,000 or more.
In other words, a person is not allowed to repay the deposit or loan in cash if the amount is equal to Rs. 20,000 or more under Section 269T of the Income Tax Act.
The Government or any organisation established by the State, Central, or Provincial Act is exempted from this act.
How to do the purchasing
Individuals are allowed to do cash transactions up to Rs 20,000. This amount will be shown in your registry as well. Transactions above that amount can be done via cheque or electronic transaction.
For all the latest business News Click Here
