Income Tax Notice Rules: Due to the rising rates of property, it becomes difficult for people to buy property. In such a situation, while buying and selling property, you should pay attention to some important things so that you do not have to face trouble. If you use more cash than this limit while buying property (Property buying rules), then on this occasion you are sent a notice by the Income Tax Department. Let us know about this in detail.
Cash payment limit in property in India. The Income Tax Department has made some rule regarding every transaction. In such a situation, if you violate these rules, then you may have to face difficulties due to this. Apart from this, you can also be sent a notice by the Income Tax Department. Because of this, it is very important that you know how much cash can be used while buying property. Know the full details about this in the news.
Only this much amount can be recovered in cash-
For information, let us tell you that according to the rules of Income Tax (IT update), you cannot take more than Rs 19,999 in cash. For this, in 2015, changes were made in Sections 269SS, 269T, 271D and 271E of the Income Tax Act. Out of these, the change made in 269SS (IT Act 269SS kya h) is very important, which gives information about the penalty in such a situation. The government did this with the intention of stopping black money. Actually, after a transaction in cash, it becomes difficult to find out whether that cash (Cash verification) has been earned legally or not.
Rule has been made under section 269SS-
Under section 269SS, if any person sells land (land buying rules) (even if it is being taken for farming), house or any other kind of immovable property, then in this situation that person cannot collect an amount of Rs 20,000 or more in cash (cash limit in India). If a person violates the rules (IT New rules), then in such a situation a penalty of 100 percent is imposed on him.
Know what is 100 percent penalty-
Under section 269SS of the Income Tax Act, if any person is taking an amount of 20 thousand or more in cash (cash transaction rules) at the time of selling the property (Property Selling rules), then that entire amount has to be paid as a penalty. Meaning whether you have taken Rs 50,000 or Rs 1 lakh, that entire amount goes to the Income Tax Department (IT department penalty) as a penalty.
Apart from this, there is also this rule-
Section 269T (Section 269T kya h) has also been made by the Income Tax Department. If such a deal is cancelled for any reason, then in such a situation, if the buyer asks for the money back in cash from the property dealer or seller, then once again a penalty is imposed. If an amount of Rs 20,000 or more is returned in cash (cash limit at home), then like 269SS, the entire amount goes into penalty. However, this law does not apply to the government, government company, banking company or special person and institution (NBFC for loan) identified by the central government.
How to do property related transactions-
In a property deal, you can do cash transactions (Cash Transactions rules in India) only up to Rs 19999. This is clearly shown in your registry. The amount above this can be done through cheque or electronic transaction (Internet banking). However, keep in mind that the registrar usually does not cancel the registry due to cash transactions for the property, rather they will register the property but will send the cash related data to the Income Tax Department. After this, you may get into trouble.
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