However, according to the second proviso so you can Section 269SS, where both depositor in addition to recipient are having farming income and are also perhaps not for the receipt of every almost every other taxable money, Part 269SS gets zero application.
Generally speaking, according to the terms regarding Area 269SS, a person dont located advances offered regarding immovable possessions out of Rs. 20,000 or even more when you look at the cash. 20,100000 or even more in respect off consideration for sale out-of property would be liable to penalty less than area 271D of the Operate.
The newest proviso in order to area will bring “Given further the specifications associated with part shall perhaps not incorporate to your loan otherwise put or given share, the spot where the person out-of just who the mortgage or deposit or specified contribution was taken or acknowledged additionally the individual because of the who the loan or put otherwise specified contribution try pulled otherwise acknowledged, try both with farming money and you can neither ones has actually any money chargeable so you can taxation lower than which Act.” It determine that enjoy of deposit/ mortgage /given sum should not attract terms away from sec 269SS where one another the fresh new events are agriculturists and you will one another have money less than earliest different restriction
Q. Mr. Lal Singh ordered an agriculture house to have Rs. 1,80,100 in the bucks from Mr. Nijjar Singh. They both is agriculturists and you can none of them has actually income exceeding the basic exception to this rule maximum. If Sec.269SS be relevant on them and you may whether or not punishment u/s 271D is implemented on them?.
Ans. It’s as listed one sec 269SS works together bill out-of given sum and you will explanation on the section gets the meaning of specified contribution “brings in one sum of money receivable, if or not as advance otherwise, in relation to import out-of a keen immovable assets, perhaps the import takes place.” It covers just advance linked to immoveable property, but also currency acquired in the duration of import out-of property.
not, while the one another Mr. Lal Singh and you can Mr. Nijjar Singh is agriculturists and you will both enjoys earnings less than first exclusion maximum, sec 269SS will never be appropriate in it. Mr. Nijjar Singh have obtained ‘given sum’ other than account payee cheque/ write or ECS. However, this can maybe not total citation out-of sec 269SS and you may which, punishment you/s 271D shall not implemented.
Yet not, the question one comes up here’s if it condition would keep to utilize also where deals believe paid down because payday loans has been exposed to TDS around Section194-IA of your Act
The answer create continue to be exact same even when the belongings try almost every other than agriculture home since the different considering is not pertaining to kind of property. Instead, this new exception to this rule is for brand new agriculturists. Hence, sec 269SS will not be https://perfectloans24.com/payday-loans-ma/sudbury/ relevant in cases like this.
While the cash gotten because of the Mr
Whether your consideration toward house are Rs. 5,00,one hundred thousand the answer often however remain same. However, in this situation sec 269ST will be relevant. Sec 269ST brings that the arrangements in the part should maybe not affect purchases of character referred to during the area 269SS.It is becoming listed the purchase between a couple agriculturists who’re which have money below taxable limit is not covered by sec 269SS and therefore sec 269ST is applicable on it.
Nijjar singh exceeds Rs. dos,00,100 terms regarding sec 269ST was broken. Penalty amounting so you’re able to Rs. 5,00,100 are imposed you/s 271DA.
Part 269SS has been inserted naturally which have a standpoint to quit deals during the black money in order to ensure that money regarding Rs. 20,100000 and you can more than, is traceable to help you transactions compliment of a bank. Show software currency partakes the smoothness out-of a deposit, because it is repayable inside the specie into refusal in order to allocate offers that is repayable in the event the remembered of the applicant, just before allocation away from shares therefore the conclusion of your own offer. Bhalotia Systems Work (P.) Ltd. vs. CIT 275 ITR 399 (Jhar.)