Income Tax: If you have spent cash above the limit of Rs 20,000 in purchasing property, the Income Tax Department can send you a notice directly.
Income Tax Notice: If you are going to buy a house, or planning to buy in the future, then you should know well about the rules of the realty sector. Because you cannot make a cash transaction of more than 20,000 to buy a house. If you have spent cash within the limit of more than 20,000 in the purchase of property, then the Income Tax Department can send you a notice directly.
Not only this, according to section 269T of the IT Act, if the property transaction is canceled, then even after returning the amount, the transaction will have to be done by check if it is more than 20 thousand rupees. If the repayment is made in cash here too, then here too you can be fined 100% on the amount.
According to the report of Money9, farmers who are not taxed on any other income, if they are selling their land, then they do not come under this section. Secondly, if there is any transaction for immovable property worth Rs 30 lakh or more, then you will have to inform the Income Tax authorities about it. Otherwise, you may get a notice from the Income Tax Department.
Limit on cash transactions
If you have spent more than Rs 20,000 in cash for property purchase, the Income Tax Department can send you a notice directly. And to curb black money, there are separate income tax rules on the use of cash in real estate deals.
Tax Saving Scheme
If you want to take advantage of tax savings, then never deposit the health insurance premium in cash. According to the Income Tax Act, if the insurance installment is paid in cash, then the benefit of tax exemption under Section 80D of the Income Tax Act will not be available. Experts believe that the health insurance premium should always be deposited through the bank.
Heavy penalty will be imposed on the person receiving cash
There are many cases in which the person is taking payment in cash, then it is his responsibility not to receive the payment in cash. In such a situation, if any kind of penalty is imposed, then it will be his responsibility to pay the penalty. The responsibility of not taking money in cash lies with the person receiving the money because the person making the cash payment can also back out. Therefore, you should always transact through bank or through cheque.
