Whether booking amt accepted by builders attracts 269SS

This query is : Resolved

CA Atul Singhal (Querist)
Follow

17 September 2009 Pls tell whether advance booking amount against Flats accepted by builders & real estate devolopers attracts 269SS

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
Follow

17 September 2009 no....its advance n not in nature of loan/deposit

CA Atul Singhal

CA Atul Singhal (Querist)
Follow

19 September 2009 it means advace booking amount can be accepted in cash and can be repaid in cash.

CA. Bikash Bogi

CA. Bikash Bogi (Expert)
Follow

27 September 2009 it should be accepted otherwise than cash for preventing any difficuty in future

CA Atul Singhal

CA Atul Singhal (Querist)
Follow

27 September 2009 is it nessessary to take PAN and address details of depositor?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

03 August 2025 Regarding whether booking amount accepted by builders attracts Section 269SS (which prohibits acceptance of loans or deposits of Rs. 20,000 or more otherwise than by cheque or bank draft):

Booking amount for flats by builders is considered an advance, not a loan or deposit.

Therefore, Section 269SS does not apply to booking amounts.

Builders can technically accept advance booking amounts in cash, but it's always advisable to accept payments through banking channels for transparency and future ease.

As a good practice, builders should obtain PAN and address details of the depositor, especially for amounts exceeding Rs. 20,000, to comply with income tax documentation and reporting requirements.

So, advance booking amounts are not covered under Section 269SS, but proper documentation including PAN details should be taken to avoid any compliance issues.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now