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271D of Income tax applicability

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Pawan Sharma

23 Points Posted on 08 May 2024

Dear Sir,

Mr. L made a payment to Mr. D from 2010 to 2011 in cash near about total amount of Rs.35lacs.

Now Mr. D proposed a land to Mr.L with legal agreement of Rs.65Lacsl in 2024.

Mr. L suggest to Mr.D to please adjust his money which was given earlier years to him in this agreement.

Please suggest that is any 271D compliance will arise in this situation.

In my opinion sec 271D effected from 15/05/2015 and transactions was done before implementing this section.

Thanks in advance for your views.

Replies (2)

Quick Summary

This discussion addresses the applicability of Section 271D of the Income Tax Act to a cash payment of Rs. 35 lacs made between 2010 and 2011. The user is seeking clarification on whether Section 271D, which became effective on 15/05/2015, will apply to a transaction that occurred before its implementation. While Section 271D itself may not be directly applicable due to the transaction date, the discussion highlights potential issues during tax assessment if the transaction appears in the Annual Information Statement (AIS).

monojit sharma

67 Points Posted on 12 May 2024

You can go on. but there are some legal problems. for specific interaction you can mail to : taxfriendlyburdwan @ gmail.com for further assistance

Vishal Manakshe

178 Points Posted on 14 May 2024

271D will not be applicable as transaction is before the applicability of the section. However, the transaction will be reflected in AIS, therefore your case might be selected for assessment.
Then in assessment you will have to explain such transactions.