Cash Transaction Limit: If you have spent cash within the limit of more than 20,000 in the purchase of property, then the income tax department can send you a direct notice. To curb black money, there is a separate income tax rule on the use of cash in the dealing of immovable properties. Let’s know about it in detail.
If you are going to buy a house, or are planning to buy in future, then you must know a simple rule of the realty sector.
You cannot do a cash transaction of more than 20,000 to buy a house. If you have spent cash within the limit of more than 20,000 in the purchase of property, then the income tax department can send you a direct notice.
Not only this, according to Section 269T of the IT Act, if the property transaction is cancelled, then even after returning the amount, the transaction will have to be done through check if it is more than Rs 20,000. If the repayment is done in cash here too, you will be charged 100% penalty on the amount here too.
Two things to remember
Such farmers who are not taxed on any other income, they are selling their land, then they do not come under this section. Secondly, if any transaction is taking place for an immovable property worth Rs 30 lakh or more, then you will have to report it to the income tax authorities.
