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Cash Received Sale of Land

26 June 2021

Land Sold for 39 Lakhs

Party received Cash of Rs. 20 Lakhs
Received through Cheque: Rs. 19 Lakhs

How to manage the Cash, can they deposit the cash in their Children's Account

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11 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 26 June 2021

Deposit in partly in bank account

veerendar singh (tax consultant) (3301 Points)
Replied 26 June 2021

269st is violated

Vasudevan C P (403 Points)
Replied 26 June 2021

Yes, 269st is violated in dis case

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 26 June 2021

Penalty applicable on cash amount u/s 269st

Prabhat Pandey (210 Points)
Replied 26 June 2021

Deposite in bank account which was recived through cheque but section 269st is violated on above cash transcation amount 19 lakhs hence Penalty applicable on cash amount U/s 269st...

CMA Poornima Madhava (CMA) (13097 Points)
Replied 26 June 2021

Cash receipt results in violation of provisions of section 269SS as well as 269ST.

ajeet singh (1392 Points)
Replied 29 June 2021

Not to be in hurry its usual process only the stamp value or face value on which sale deed is executed money of only that amt is through bank channel rest is taken in cash to asvoid taxation so dont be in hurry if stamp value is equal to chaeq and cash amt u should ask the buyer to give whole amount theoguh bankning channel

Prachi Bansal (3124 Points)
Replied 01 July 2021

will there be any issue if money or cheque is deposited into children's accounts?

ajeet singh (1392 Points)
Replied 01 July 2021

Yes if ur claming exemption under sec 54

Prachi Bansal (3124 Points)
Replied 03 July 2021

what will be the repercussions ?

ajeet singh (1392 Points)
Replied 03 July 2021

The ao may disallow the exemption availed , penalty on tax evaded upto 200% , Income from unexplained source will be taxed Higley under @ 60% and interest underc234a and 234b as well as penalty of escapement and contravention of sec 269st for cash transaction