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Ravi Divate   27 April 2018

Cash amount in sale deed

Hi All,

I bought a plot (site) in Mar 2013 for 16Lakhs but the registered amount was only 4.2Lakhs. And I recently sold that plot in Feb 2018 for a registered amount of 27.6Lakhs in which 19.32Lakhs is received via DD and rest 8.28Lakhs in cash. This is clearly mentioned in the sale deed. Now recently I consulted a CA for tax liability on this sale and he instructed me to get the sale deed corrected as the cash amount cannot be accepted for property sale. He wanted me to get this corrected with 8.28 Lakhs as either cheque or NEFT/RTGS to the account. Is this really required? As it is clearly mentioned in the sale deed 8.28Lakhs is received in cash will that not saffice to be accounted for?

Please help me in this regard.

Thanks,

Ravi D



Learning

 2 Replies

Siddharth Jain   27 April 2018

The government has banned cash transactions of Rs 2 lakh or more from April 1, 2017, through the Finance Act 2017.

The newly inserted section 269ST in the Income Tax Act bans such cash dealings on a single day, in respect of a single transaction or transactions relating to one event or occasion from an individual. “Contravention of Section 269ST would entail levy of 100 per cent penalty on receiver of the amount,”
Did you get the sale deed registered as yet or not?
You can reach me at isidjain1@gmail.com

Ravi Divate   27 April 2018

Thanks for your reply.

Yes the sale deed is already registered for 27.6Lakhs.


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