should I buy 50 lac flat they will provide agreement for only 25 lac
8 months ago
There's a flat in Indore city with a total cost of 50 lakh rupees. The owner is requesting 25 lakh rupees in cash and the remaining 25 lakh rupees through a bank transaction, intending to reflect 25 lakh rupees in the official documents. I'm wondering whether this arrangement would be advantageous for me or if it could potentially lead to future complications.
A.Dear Client,
As per Section 269SS of the Income Tax Act, no real estate transaction is to take place if the cash amount exceeds Rs 20,000. The seller will be held guilty of taking payment of over Rs 20,000 in cash and must be prepared to pay a 100% penalty fee for it. The government in the last budget introduced Section 269ST in the I T Act.. Under the section, cash transactions exceeding Rs.2 lakhs are prohibited with a view to promoting the digital economy. According to the provision of Section 269ST- No person shall receive an amount of two lakh rupees or more - 1) In aggregate from a person in a day - 2) In a single transaction, 3) In respect of transactions relating to one event or occasion from a person. Cash transactions or cash receipts related to a single event or for the same purpose/occasion, cannot be more than Rs 2 Lakh. If a person receives the amount in cash over the above-specified limit of Rs.2 lakhs, he is liable to pay a penalty equal to the amount received in cash as per Section 271DA of the Act. So, the arrangement proposed by the seller/owner of the property is contrary to the standing provision of the Income Tax Act and is not acceptable at all which may put you both face legal consequences. You may consult with an Income Tax Consultant or CA for further clarification on the matter.
As per Section 269SS of the Income Tax Act, no real estate transaction is to take place if the cash amount exceeds Rs 20,000. The seller will be held guilty of taking payment of over Rs 20,000 in cash and must be prepared to pay a 100% penalty fee for it. The government in the last budget introduced Section 269ST in the I T Act.. Under the section, cash transactions exceeding Rs.2 lakhs are prohibited with a view to promoting the digital economy. According to the provision of Section 269ST- No person shall receive an amount of two lakh rupees or more - 1) In aggregate from a person in a day - 2) In a single transaction, 3) In respect of transactions relating to one event or occasion from a person. Cash transactions or cash receipts related to a single event or for the same purpose/occasion, cannot be more than Rs 2 Lakh. If a person receives the amount in cash over the above-specified limit of Rs.2 lakhs, he is liable to pay a penalty equal to the amount received in cash as per Section 271DA of the Act. So, the arrangement proposed by the seller/owner of the property is contrary to the standing provision of the Income Tax Act and is not acceptable at all which may put you both face legal consequences. You may consult with an Income Tax Consultant or CA for further clarification on the matter.
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A.Dear client,
You can do the payment through a bank transaction and also by cash. This would not cause any future complications for you.
You can do the payment through a bank transaction and also by cash. This would not cause any future complications for you.
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