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WHOLLY CASH TRANSACTION

28 July 2022

My friend bought a land of Rs 20,00,000/-, where the payment has done through cash.. Now is he taxable for that transaction?? Or Seller is taxable??? kindly reply..

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2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 28 July 2022

Section 271DA of the income tax act provides for the leavy of penalty on a person who receive a sum in contravention of the provisions of section 269ST ( more than 2 lacs in cash ) , The penalty shall be equal to the amount of such receipt , however the penalty shall not be levied if the person proves that there were good and sufficient reasons for such contravention . In your case seller who receive money more than 2 lacs in cash is taxable .