CASH PAYMENT 20K IN SALE OF LAND

This query is : Resolved

Dibyendu Majumder (Querist)
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01 May 2023 My client is a real estate developer & going to purchase land, in which party asks him to pay INR 20000.00 in cash and the rest of the consideration amount in DD (A total 5 parties involved in the purchase, 1 party fully paid by DD and the rest of 4 parties demanded INR 5000/- X 4), Is any restriction applicable u/s 269S, 269T or any other rule to pay this cash & record in memo page of deed?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 May 2023 For you, payment of specified amount is restricted to Rs. 20000/- under sec. 269T of IT act.
But considering it being paid to different persons, it will be allowed.

Dibyendu Majumder

Dibyendu Majumder (Querist)
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01 May 2023 Sir, In this case, 4 Parties demanded INR 5000 each, a total of INR 20000.00 in the purchase of a single piece of land, which will be registered by a single deed. Is the purchaser will free to mention the cash INR 5000 X 4 and 1 account payee DD given to the parties in the consideration memo page?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 May 2023 To avoid any future query, better to mention Rs. 4.999/- * 4 to each payee.

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