Regarding mode of payment without any IT Notice

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Farmers looking to buy agricultural land without receiving income tax notices should use banking channels for all payments, such as cheques or RTGS. While using banking modes is mandatory, properties valued over £30 lakh may still attract queries. Filing income tax returns is the best way to avoid these, but if the funds are legitimate, a banking transaction query can usually be resolved easily. Paying partially in cash is not permitted and can lead to penalties.

Ruchi Rakh

Ruchi Rakh (Querist)
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15 June 2023 If there is a farmer who does not file income tax, if he wants to buy an agricultural land, then in which mode should he give the money to the person in front of him so that he does not get any income tax notice??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 June 2023 For purchase of any property payment through any Banking mode (like Cheque, DD, RTGS etc.) is mandatory.
In case the value of the land registered is more than 30 lakhs, he may still get a query.

Ruchi Rakh

Ruchi Rakh (Querist)
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15 June 2023 So what will do if he doesn’t want to get any query bcoz he is farmer nd he didn’t understand to IT Rules nd regulation

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 June 2023 There is no other provision to stop query from ITD if the value of the property is Rs. 30 lakhs or more. The query may or may not arise. Generally filing return of income is best source to hinder such queries.
Secondly, if the amount is paid by banking mode and if the capital he is investing is from legitimate source, he can easily reply to the query without any further investigations.

Ruchi Rakh

Ruchi Rakh (Querist)
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18 June 2023 So can he pay some amount with cash and remaining with cheque?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 June 2023 No. The transactions should be through banking channel only, otherwise penalty gets attracted.

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