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.
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