28 February 2019
MY CLIENT RECEIVED CASH AS ON MONEY IN FY 11-12 FOR SALE OF AGRICULTURAL LAND WHICH IS SITUATED IN RURAL AREA BUT THIS CASH MONEY IS NOT INCLUDED IN SALE AGREEMENT. HE HAS HAVING INCOME FROM AGRICULTURAL PRODUCE. HE WAS ALSO NOT FILED HIS RETURN FOR THE FY 11-12. HE WAS DEPOSITED THE RECEIVED CASH IN BANK AROUND 40 LAKHS. NOW HE GOT NOTICE FOR THIS. HOW TO GIVE ANSWER TO THIS NOTICE. ALL THIS MONEY IS RECEIVED FOR SALE OF AGRICULTURAL LAND. HE HAS NO PROOF FOR THIS AND ALSO BUYER IS NOT READY TO GIVE CONFIRMATION FOR THE SAME. PL GIVE URGENT REPLY
28 February 2019
Make a letter to ITO point wise. 1. Your client is a farmer hence not required to file ITR. Being sale of agriculture land is totally exempt u/s 2(14) take the plea for not filing ITR. Also take plea of farmer being not aware of tedious laws of income tax etc. 2. Income received from agriculture land sale, file an affidavit in this regard as no other proof is available. 3. Give address of the buyer and ask for his/her cross examination in case buyer do not cooperate. Refer Recent Case Name : Shri Jafrudin Kaji Vs The Income Tax Officer (ITAT Ahmedabad).
27 May 2020
Limit of 20,000 for immovable property transactions: CBDT reads discriminatory and peremptory law to ludicrous level
An additional bar was put on cash transactions in excess of Rs 20,000 in section 269SS of the Income Tax Act, 1961 with effect from 1 June 2015
From 1 June 2015, transactions in immovable properties for cash in excess of Rs 20,000 were also barred IT sleuths are gunning after all transactions of cash from 2015 to 2018 on the basis of examination of registered sale deed
An additional bar was put on cash transactions in excess of Rs 20,000 in Section 269SS of the Income Tax Act, 1961 (the IT Act) vide Finance Act, 2015, with effect from 1 June 2015. Prior to that date, transactions in loans and deposits in excess of Rs 20,000 in cash were barred.
From 1 June 2015, transactions in immovable properties for cash in excess of Rs 20,000 were also barred.
It is significant to note that agricultural land is as much hit as any other immovable property but the proviso to Section 269SS makes a volte face by saying if both the purchaser and seller are having only agricultural income and no other income taxable under the IT law they would be spared from the compliance of the whole Section. Be that as it may, others flouting this Section would be punishable with a penalty equal to the amount of cash transaction even if the excess over Rs 20,000 is just Rs 100. Section 271D makes it mandatory on the joint commissioner of income tax to slap this penalty without any leeway or exemptions.
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