Yes. The limit for payment in cash is only Twenty thousand. IT department can issue show cause notice and can impose penalty also to the tune of three hundred times.
Cash payment no IT returns
Being a farmer into floriculture, was interested in land extent of 1 acre which was on sale for Rs 61 lakhs. Seller agreed to sell since, the code of the land was pending did a registered sale agreement 21/12/2013. Rs 59 lakh was paid in terms of Rs 10 checque and Rs 49 lakh cash. Since the seller did not come forward for sale deed given legal notice through lawyer he did not reply, on approaching trail court, seller argued the stating amount received was a loan and not for land and accepted recived Rs 10 Lakh checque and Rs 10 Cash only. Trail court ruled in favor of us and decreed. Seller appealed to HC RFA with same stand, HC ordered to deposit to court the amount with interest to continue stay on Execution case within 6 weeks, seller failed to deposit. Seller appalled to Supreme Court on HC conditional stay order but dismissed the appeal and extended one month to deposit. Seller failed to deposit, stay was vacated and trail court executed sale deed in favor of me. RFA is front of HC for further proceedings, since we have paid to seller in cash of Rs 49 lakhs is there a problem. Since the money earned from floriculture was mostly cash and have not filled IT returns. Kindly advise.
Asked 2 years ago in Property Law
Religion: Hindu
14 Answers
there is no evidence of payment of cash
2) payment of cash of Rs 49 lakhs is an offence
3) penalty can be imposed equivalent to cash received
If in scrutiny the said income is found then you may have to pay tax and penalty on the same
- As per Section 269ST of the Income Tax Act, the seller will be held guilty of taking payment of over Rs 200,000 in cash and must be prepared to pay a penalty .
- Further, as per Law maximum up to 2 Lakh Rupees cash is allowed in Purchase of properties.
- Further , if you have not filed the IT returns earlier also, then there is less chances to trace the said transaction by the IT department.
HC appeal has become infructuous. Have you mention in the sale deed that 49 rs paid in cash ?
Dear Client,
Certainly! The maximum allowable cash payment limit is only twenty thousand. In case of non-compliance, the IT (Income Tax) department retains the authority to issue a show cause notice and may impose penalties up to three hundred times the amount involved.
As the appellate courts have dismissed his appeals, there is no more appeal pending before any court.
Besides the trial court has allowed your execution petition, you can get it registered to your name, take possession and enjoy the same as an absolute owner.
The court will not go into the details of cash payment or payment made through cheque, the judgment has already been passed in yor favor, you may remain silent about it until and unless the IT department is sending you any notice.
As the court has already recognised the transaction, the IT department may not disturb the court judgment.
any cash amount above Rs. 2 lacs paid by a person to another for a single transaction on the same day is an IT Act violation
the HC is not concerned with any IT Act violation in the RFA before it
so you can always prove that 49 lacs was paid to seller in cash
What are the options/appeal after losing in 3 bench in supreme court,
Asked 2 years ago
File review petition in SC
review petition is to be filed within 30 days of the pronouncement of judgment or order and that petition should be circulated without oral arguments to the same bench that delivered the judgment.
On examination of details of facts and orders suggestion regarding remedies can be made. If required consult with detail.
The decision in the appeal before supreme court is final.
The supreme court order has to be obeyed.
Matter over than.
Curative petition last option or review
Review petition is only option
Dear Client,
You can file a review petition. A review petition is a request to the Supreme Court to reconsider its judgment. The Supreme Court will only grant a review petition if it finds that there is a "substantial question of law" that was not considered in the original judgment.