Section 269SS prohibits a taxpayer from taking/accepting loans or deposits or a sum of more than Rs. 20,000 in cash. All loans and deposits of more than Rs. 20,000 must always be taken through a banking channel.
Cash deposits of property sale
1) Is there any limit to cash deposits in bank of high transaction value e.g. Rs 1cr relating to property sale. If I'm ready to declare the cash as consideration received on property sale and abide by whatever taxation may apply, then am I allowed legally to deposit such high transaction value? 2) Is there any Charted Accountant issued letter/certificate needed for allowing such high value cash deposits?
Asked 5 years ago in Taxation
4 Answers
1. Individuals who deposit cash above Rs.2.5 lakh and senior citizens who deposit cash above Rs.5 lakh may be scrutinised. Any amount within the specified limit will be excluded from scrutiny considering that the money is from household savings, cash withdrawals, earlier income, and so on.
People under scrutiny can submit explanations online through their login on the e-filing portal. They do not need to visit the income tax office. PAN holders can view this information using the ‘Cash Transactions 2016’ under the ‘Compliances’ section.
There is no such limit in case you have provided the PAN and your KYC formalities are completed.
any one can safely deposit upto Rs. 250,000.00 in the amount, probably without much questioning. If the amount deposited is above Rs. 250,000.00 IT Department will definitely track any deposit above certain amount, but if it well declared and legitimate, no questions will follow, no penalty, Other wise Income Tax may be imposed at the highest applicable rate, plus a 200% penalty may also be levied.
Dear sir/ma'am,
According to the relevant law, taxation charges apply for withdrawal alone. There is not upper limit to transfer 1 crore money in a bank account for the sake of making any transaction. There might be additional charges depending upon the bank you plan to deposit the money. Also the officers might go through a screening or verification process to check the authenticity of the source of that money.
Please note that as long as you are going to furnish the PAN card details, the tax charges will apply after a considerable amount of time has passed since the you made the deposit in bank and TDS will be deducted by the bank. Thank you.
- Under the Income Tax Act , property is regarded as a capital asset and any gains arising from its sale is taxable as Capital Gains.
- Further, if the property is held for less than three years prior to its sale, it is termed as a short-term capital asset and any gain arising from the sale is treated as a short-term capital gain.
- Further, if the property is sold after a holding period of more than three years, it is to be treated as a long-term capital asset and a gain arising from its sale is assessed as long-term capital gains
- Further as per Section 54EC of the IT Act, any capital gains arising from the transfer of a long-term capital property/asset would be exempt if the gains are invested within a period of six months in specified investments, and these investments are three-year bonds of National Highway Authority of India (NHAI) or Rural Electrification Corporation
- Further, as per Section 54EC of the IT Act, any capital gains arising from the transfer of a long-term capital asset/ property, would be exempt if the gains are invested within a period of six months in specified investments, and these investments are three-year bonds of National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC). However, there is a restriction in this investment: the amount invested cannot exceed Rs 50 lakh in any financial year.
- Further , if it is an ancestral property , then it will treated as long term capital gains tax , and rule of income tax applicable as i mentioned above.
- This amount should be deposited in the capital gains account.
