Penalty in White Cash Transaction on sale of the house

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 .

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...

@ Sabyasachi ji

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

Cerainly ..
Read sec 269 ST

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