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Limit for cash receipts

Pranavi (Article) (65 Points)

19 November 2016

hello, Are there any Restrictions on receipt of Sale Consideration of Immovable Property in Cash. If any then what is the Maximum amount of sale Consideration of Immovable Property that can be received in Cash. Thank You,

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193752 Points)
Replied 19 November 2016

In order to curb the generation of black money by way of dealings in cash in immovable property transactions, section 269SS of the Income-tax Act has brought out some changes for the realty sector. As per the new tax law by Central Board of Direct Taxes (CBDT), which is effective from June 1 2015, any transaction in real estate, including agricultural land, shall be required to be made through account payee cheque or real time gross settlement(RTGS) or electronic funds transfer if the amount is Rs 20,000/- or above. If transaction is done in cash then penalty of an amount equal to such cash transaction will be imposed on seller who accepts cash or refund of advance is made in cash by the seller of property.