CASH from Agriculture land sale

Whether Agri land is rural or urban ?
Transaction in excess of 2 lakhs in cash is not allowed under 269ST

Advance from buyer should be deposited in grandfather's seller account If Grand father is not having bank account then open new account

PAN is must for your grandfather and as well as for buyer.
Notice may/may not come but you have to keep the things/ documents in order.
If any specific query then reply.

Sir,

Rural Agricultural land.We received from Buyer whole property amount in advance,Rs. 9.5 lac deposited in my brother account .

Property will sold later.This land comes under my father share(As share in Parent property) .But sell by grandfather bcoz this land in his own name.My father deposit this amount in my brother account(Student). So how should I document this.How to account that Grandfather distribute this land to my father (Orally). No document of anything. I am himself Semi Qualified CA,but unable to understand how should account all these.If IT notice comes in any case. (10 Lac limit is not crossed in my brother saving cash account)

 

Section 269ST in the Income Tax Act bans such transactions in cash amounting to Rs 2 lakh or more on a single day, in respect of a single transaction or transactions relating to one event or occasion from an individual

So as a semi-professional you understand that you are hit by 269ST.

Please re-read my above reply
More you can mail me - pnkapadia @ gmail.com

1. Sale consideration received in cash will always be a problem. Though you have mentioned the same as rural agricultural land it will not be attracted to capital gain tax. 
2. As mentioned by expert above sec 269ST which prohibits cash transactions in excess of Rs. 2 lakhs per day from a single person. 
3. Though the sale in itself will be questioned when the entire sale consideration is received though cash and agreement of sale specify the date and mode of receipt of consideration. 
4. In your case, the entire amount could be received in part (not exceeding Rs. 2 lakhs) on various dates to avoid violation of sec 269ST. 
5. The person in whose name the account is maintained may be questioned regarding this deposit. It is better to get the same through proper banking channel. 
6. The solution could be to open a bank account in the name of grandfather and then gift the amount to grandson through DD or cheque from that account. It will be treated as a gift and will not be subject to tax in grandson's hand. 
Please correct me if the above solution has an alternative view.