Whether booking amt accepted by builders attracts 269SS
This query is : Resolved
17 September 2009
Pls tell whether advance booking amount against Flats accepted by builders & real estate devolopers attracts 269SS
17 September 2009
no....its advance n not in nature of loan/deposit
19 September 2009
it means advace booking amount can be accepted in cash and can be repaid in cash.
27 September 2009
it should be accepted otherwise than cash for preventing any difficuty in future
27 September 2009
is it nessessary to take PAN and address details of depositor?
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.
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Tds on commission charges
- GST ITC REVERSE
- Fixe term employment
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- TDS on TRUST
- Withdrawal in cash from partners capital account by partner
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Section 50-fixed asset-->building ceases to exist
- Regarding Applicability of Tax Audit u/s 44AB
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
