New Delhi, Jan 20: Just before elections, Rs 20000 cash will land you in trouble. Be ready to get an Income Tax notice if you have made a cash transaction. The IT department is starting a special drive to catch you.
If you have made a cash transaction of above Rs 20,000 in a property deal in Delhi, then IT officials will soon knock your door. Delhi wing of the IT department is all set to start drive against property purchases where the cash amount crosses Rs 20,000 limit
"Income Tax Department's Delhi division is short-listing the registry of properties involving cash payment above Rs 20,000. I-T Dept has scanned all the registries made from 2015 to 2018 when I-T teams visited all 21 Sub-Registrar offices of Delhi. They scanned all the registries done from June 1, 2015, to December 2018 where the cash payment above Rs 20,000 was made," a senior IT official was quoted in media reports. The officer spoke on condition of anonymity.
To curtail black money in property deals, Section 269SS of the Income-Tax Act made few changes for the realty sector in 2015. CBDT formulated rule, which is effective from June 1, 2015 says that in case of property deals above Rs 20,000 all transactions have to be done via account payee cheque or real-time gross settlement (RTGS) or electronic funds transfer. This law is applicable to agriculture land deals also.
If the cash transaction beyond the limit is done, then a penalty of an amount equal under Section 271 D of Income Tax Act will be imposed on a seller who accepts cash or refund of advance is made in cash by the seller of the property.
Sources said that I-T Department will start sending notices from next month. Both, sellers and buyers, will be sent notices. It the seller has accepted cash above Rs 20000, then he will be asked to pay the penalty of an equal amount. "We will also ask the source of money with the purchaser," said that unnamed IT official.