News India Live, Digital Desk: (Cash Payment Limit in India) If you are thinking of buying or selling property, then it is very important to understand all the rules related to money transactions. Property deal is a major financial matter, and often people talk about cash transactions in it.
But careful! Full price of property in cash is not only wrong, but can also be illegal. The government has made strict rules for this. If you have crossed the fixed limit of cash transactions, then you may get notice of Income Tax Department and may have to pay heavy fine.
How much is the limit of cash transactions and why?
First of all tie these knots that in property deal (land, house or any real estate) you Can neither take ₹ 20,000 or more cashYes, the legal limit of cash transactions only ₹ 19,999 It is only.
The government has made this rule to ban black money. Cash transactions are difficult to track, making it difficult to find out whether the money has been earned properly or not. For this reason, in 2015, changes were made to Section 269SS and 269T of the Income Tax Act and provision of heavy fine was added.
What is the meaning of 100% penalty? (Section 269SS)
Now understand the biggest danger. Income tax act Section 269SS Clearly says that if you property Selling Time took ₹ 20,000 or more cash from the buyer, then you are taken on the entire cash amount 100% fine Will have to give.
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Example: Suppose you sold your property and took ₹ 50,000 cash from the buyer. So under Section 269SS, you will have to pay the Income Tax Department as a full ₹ 50,000 penalty. Whether it is 20 thousand or 2 lakhs, whatever amount you took in more than ₹ 19,999 cash, it will go into the entire fine.
Trouble does not end here! (Section 269t)
And the matter does not end here! Another income tax Section 269t Is, which acts like sprinkling salt on the burn.
Suppose, for some reason the property deal was canceled. Now the buyer is asking for his money back from you. If you have a buyer ₹ 20,000 or more cash ReturnedEven then you are equally under Section 269T 100% penalty You will get the amount you have returned to the cash.
(Note: These stringent rules do not apply to government, government companies, banking companies or some special institutions notified by the central government.)
Then how to transact property?
Now the question arises that what is a safe way?
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Cash up to ₹ 19,999: You can do cash transactions up to ₹ 19,999 in the property deal. It can also be shown in the paper of registry.
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₹ 20,000 or more: You will have to make any amount above this in methods like check, bank draft or online banking.
What happens in the Registrar Office?
Often people think what will happen if the registrar gives cash in the office. Registrars usually do not cancel the registry due to cash transactions, but they have the right to send information about your cash transaction to the Income Tax Department. If this happens, you may have to face heavy fines and legal hassles later.
Therefore, it is understandable to strictly follow these rules of cash transactions while buying or selling property and avoid any kind of trouble.
