Transaction Over Rs 20,000 in Property Purchase to Attract Penalty

Delhi division of IT department will start a drive against property purchases of cash transaction above Rs 20,000.

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The Delhi division of the Income Tax department will start a drive against property purchases of those who indulge in cash transaction above Rs 20,000, reported ANI.

The IT department has visited 21 sub-registrar offices in Delhi and scanned all the registries made from 1 June 2015 to December 2018, a senior IT department official said, according to ANI.

Any real estate transaction, including agricultural land has to be made through account payee cheque, real time gross settlement (RTGS) or electronic transfer if the amount is Rs 20,000 or above, according to the CBST law.

Section 269SS of the Income Tax Act effected some changes for the realty sector in 2015, in order to curb the generation of black money in immovable property transactions.

A penalty of an amount equal under Section 271 D of Income Tax Act will be imposed if the cash transaction is above the specified limit, ANI reported.

The notices will be sent to both the seller and the purchaser in case of defaults from next month by the assessment officer of the IT department, according to ANI.

(With inputs from ANI)