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Penalty in White Cash Transaction on sale of the house


Rahul Maheshwari (article)     07 August 2020

Rahul Maheshwari
article 
 36 points

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Resected Sir,
I have sold my house. Buyer has paid Rs. 10 lakh in cash and 2 lakh in cheque. Registry value is also Rs. 12 Lakh. Stamp duty paid on Rs. 12 Lakh.

Is there any income tax penalty on Rs. 10 lakh even I show these 10 lakh in my income tax return

avater

Sagar Patel (Tax and Business Consultant)     07 August 2020

Sagar Patel
Tax and Business Consultant 
 809 likes  8869 points

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As per Section 269ST of income tax act, 1961, any person who enters into a transaction of Rs 2 Lakh or above in cash, will be liable to a penalty of an amount equivalent to the amount of transaction.

Penalty of 100% can be levied on Cash Payment. A penalty will be applicable on Seller. An action can be taken against buyer also. Therefore, in the case mentioned above, if the seller receives 10 lac as a cash payment, a penalty of equivalent amount i.e. 10 lac can be imposed on Seller.

The said penalty shall however not be levied if the person proves that there were good and sufficient reasons for such contravention.this penalty shall be imposed by Joint Commissioner.

Kindly note that the payer of money is not liable to pay any penalty, it is the receiver of cash who has to bear the penalty u/s 271DA .

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sabyasachi mukherjee   07 August 2020

sabyasachi mukherjee

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Sec 269 St has been wrongly rephrased..


however ,
if both the source of income has earlier been shown in return and if u hv been filing your returns regularly...

avater

Sagar Patel (Tax and Business Consultant)     07 August 2020

Sagar Patel
Tax and Business Consultant 
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@ Sabyasachi ji

Can you explain/elobrate your above reply/answer with regards to this query.

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sabyasachi mukherjee   07 August 2020

sabyasachi mukherjee

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Cerainly ..
Read sec 269 ST

THE execptions has to be mentioned.
Its receipt of Rs. 12 lacs.
Rs. 2 lacs provisions can be avoided.


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