Cash payment as bayana
T. N. Bhattacharya
(Querist) 19 January 2014
This query is : Resolved
Hello. I am a govt. servant covered under CCS (Conduct) Rules. I wish to buy a property and want to give Rs. 3,00,000/- in CASH as BAYANA payment. I just want to know, whether it is legal to give more than 20,000/- in cash. If not, what kind of penalty department can impose on me.
Regards
ajay sethi
(Expert) 19 January 2014
you are aware that you cant give more than rs 20,000 in cash . if at all you want to pay token money make cheque payment . we cant advise you to violate the law .
M.Sheik Mohammed Ali
(Expert) 19 January 2014
if you properly pay the income tax, then no need bother about, whether cash or cheque.
but safely you pay the amount as cheque.
R.K Nanda
(Expert) 19 January 2014
pay by DD.
T. N. Bhattacharya
(Querist) 19 January 2014
Thanks to all experts and dear friend for providing their valuable suggestion/opinion. I got reply to first part of my query however the later part of the query is still remain unanswered.
I just want to know if my department can take any disciplinary action in this regard.(as I am government servant)
Dr J C Vashista
(Expert) 20 January 2014
Pay by cheque/DD. Deptt will take no action.
Raj Kumar Makkad
(Expert) 20 January 2014
You should intimate your department in writing about the purchase or bayana of the immovable property and should declare it at the appropriate time otherwise income tax department can initiate action at any later stage.
Rajendra K Goyal
(Expert) 20 January 2014
what kind of penalty department can impose on me.
If the entry does not have proper legal source and accounted as per procedure, the amount can be treated as black money and can attract penal provisions of IT Act accordingly.
T. Kalaiselvan, Advocate
(Expert) 21 January 2014
I agree with Mr. Goyal's opinion. If there is no proper account for your transaction, then you are liable for any legal action by the IT department in the later stage if found.
Sudhir Kumar, Advocate
(Expert) 15 April 2014
I partially disgree with all experts above.
The querist is more worried about CCS(COnduct) Rules.
AS per Rule 18, you have to give n intimation to the department within one month of transaction.
The rules prescribe a proforma wherein you are required to give the source of the money.
Such intimation is required to be given only if the transaction exceeds prescribed limit.
If the transaction is with a party with whom you had official dealing within last two years then it is not intimation rather prior approval which will be needed.
Sudhir Kumar, Advocate
(Expert) 15 April 2014
regarding penalty
if the source is intimated to the satisfaction of HOD, then you cannot be penalised.
If rule is violated then the penalty can there as per rule 11 of the CCS(CC&A) rules which cannot be awarded without following Rule 14 to 18 of CCS(CC&A) Rules
