Can a person purchase agriculture land by making payment in cash up to 2 lakhs

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You can purchase agricultural land with a cash payment of up to £2 lakhs if both the buyer and seller are agriculturalists and have no taxable income. However, for most immovable property transactions, Section 269SS of the Income Tax Act strictly limits cash payments to £20,000. Exceeding this limit can result in a 100% penalty.

Venkateshwarlu Pulluri online

Venkateshwarlu Pulluri online

(Querist)

16 November 2022 Good evening all, can a person purchase agriculture land by making payment in cash up to 2 lakhs

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

16 November 2022 Yes, provided the purchaser is also an agriculturalist and both have no taxable income as per IT act.
Otherwise as per sec. 269SS of IT act, Rs. 20,000/- is the limit.

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Venkateshwarlu Pulluri online

Venkateshwarlu Pulluri online

(Querist)

16 November 2022 ok, thank you very much sir,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 November 2022 According to section 269SS of Income Tax Act, while transacting Immovable Property, 100% penalty will be levied if seller has accepted an amount of Rs. 20,000 or more in cash from the buyer.

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