Advance amount deposited in relation to agricultural land

Tax planning 350 views 2 replies

shivam hy

yel

83 Points Posted on 14 November 2019

Please suggest me -

In my case amount of Rs. 9.5 lac deposited in my brother account by my father. He is 20 year old just studying.

The amount of Rs.9.5 lac received is advance from buyer of agricultural land & which is name of my GRANDFATHER. The land comes under in part on distribution of assets by GRANDFATHER

If income tax notice comes for 9.5 lac how to reply. The land is still not registered but whole amount is received from buyer & same is deposited in my brother account. Suggest me practical way.

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211708 Points Posted on 14 November 2019

Sorry to say that as per sec. 269ST of IT act, no person is allowed to receive cash of Rs. 2 lakhs or more from anyone on any single day or any occasion. So, difficult to protect yourself when received such an amount in cash on sale of agricultural land.

Kapadia Pravin

17264 Points Posted on 14 November 2019

Is it Rural Agricultural Land ?
Where is it located ?
Does the buyer have bank account ?
Do you have bank account in your name ?
Where is your brother's bank account ?

Here again you can not give or take cash as advance or loan in excess of 20000/-. Otherwise 100% penalty.

For what reasons you accepted cash and then deposited in bank account.

Under Income Tax, there is a ban on cash transactions over and above 2 lakhs.

Here the receiver of cash will be in trouble. Penalty is 100% of transaction amount in cash