07 July 2021
Dear experts, MY RELATIVE IS Farmer and having agriculture land at Maharashtra now he want to sale this land and approx value is 21 lakh but buyer paid this amount in cash. As per above situation it's violation of income tax rule 269SS for cash transactions above 2 lakh. Also please tell income tax provisions in above suituation.
08 July 2021
Please check whether your relative is covered under the proviso for the section. It says if both buyer and seller have agricultural income and both of them don't have any income chargeable to tax under the Income tax Act, then this section doesn't apply to him/her. The receipt described in the section relates to the term "specified sum" as it is neither a loan nor a deposit. The term "specified sum" covers receipts in relation to transfer of an immovable property. "specified sum" means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place.
08 July 2021
That's for agricultural produce sales. your query related to sale of agricultural land for which section 269SS only applicable. No relaxation.
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