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Consequences of cash transactions in immovable property
Under Income-tax, what are the consequences for the 'Buyer' on buying immovable property with about 50% cash component? Will he get away with penalties if he is able to explain the source of cash?
Replies (5)
As per 269st, no person is supposed to receive more than 2lac in cash. if he receives, he ll have to pay the an amount equal to sum received as cash
Under income tax, restrictions w.r.t. transactions on immovable property is on the seller. The seller cannot accept cash >=20k to comply with section 269ss. But no such restriction on the buyer under income tax.
Section disallows capital expenditure with cash payment
How does that matter for an individual buying a residential property?
I meant in respect of business property. it doesn't matter for residential property. but seller will face the music for accepting cash
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