Anyone who is receive to own received advance dollars off Rs

not, according to the second proviso in order to Area 269SS, in which the depositor as well as the recipient are having farming income and are maybe not inside receipt of every most other taxable money, Part 269SS will have no app.

Generally, as per the arrangements regarding Part 269SS, a guy never discover improves on the market of immovable possessions regarding Rs. 20,100000 or more when you look at the dollars. 20,one hundred thousand or more according out-of thought on the market from possessions might possibly be prone to punishment under part 271D of your Act.

This new proviso so you’re able to part will bring “Offered next that specifications regarding the area should maybe not use to your loan or deposit otherwise specified sum, the spot where the people from who the borrowed funds otherwise put or given share was drawn or recognized and also the people because of the which the newest mortgage or deposit otherwise specified contribution was removed or acknowledged, try one another having farming earnings and you will none of those enjoys people income rechargeable so you can income tax significantly less than so it Act.” It determine one to allowed out-of deposit/ mortgage /given contribution shall maybe not attract arrangements off sec 269SS in which one another the latest parties is actually agriculturists and you can both possess money lower than first exception to this rule maximum

Q. Mr. Lal Singh ordered a farming home to possess Rs. step 1,80,100000 from inside the dollars out-of Mr. Nijjar Singh. Both try agriculturists and you may do not require have income surpassing the basic difference limit. If Sec.269SS be relevant to them and you may if or not punishment u/s 271D was enforced on them?.

Ans. It’s getting listed one to sec 269SS works together with receipt off given share and reasons for the part provides the meaning of specified share “produces one sum of money receivable, whether as the advance or otherwise, in terms of transfer regarding an immovable property, if the transfer happen.” They discusses not only improve linked to immoveable assets, also money acquired in the lifetime of transfer out-of possessions.

But not, since each other Mr. Lal Singh and you will Mr. Nijjar Singh are agriculturists and you will one another enjoys money lower Denton payday loans than first exemption restriction, sec 269SS will never be applicable in it. Mr. Nijjar Singh have received ‘specified sum’ besides account payee cheque/ draft otherwise ECS. However, this can perhaps not amount to admission out-of sec 269SS and you can hence, penalty you/s 271D should not imposed.

Yet not, the question that comes up we have found whether so it standing perform remain to utilize actually where in fact the revenue attention paid down since the cash advance could have been confronted with TDS below Section194-IA of your Work

The answer create will always be exact same even when the home is other than just agriculture homes due to the fact exclusion offered isn’t pertaining to variety of property. Instead, the exception is for this new agriculturists. Thus, sec 269SS won’t be relevant in this case.

Just like the dollars acquired by Mr

In case the idea toward homes are Rs. 5,00,000 the clear answer commonly however continue to be same. Yet not, in cases like this sec 269ST might possibly be appropriate. Sec 269ST brings the arrangements on the part will perhaps not affect transactions of characteristics described in the area 269SS.It’s to be listed the transaction ranging from a few agriculturists who’re having money lower than nonexempt restriction is not included in sec 269SS so because of this sec 269ST are applicable inside it.

Nijjar singh exceeds Rs. 2,00,000 arrangements off sec 269ST was violated. Penalty amounting so you’re able to Rs. 5,00,000 are implemented u/s 271DA.

Part 269SS could have been entered of course having a viewpoint to avoid purchases during the black money and to make certain that payments off Rs. 20,000 and you may over, is actually traceable in order to transactions as a consequence of a lender. Display app money partakes the smoothness out-of a deposit, since it is repayable when you look at the specie to the refusal so you’re able to allot offers that’s repayable if appreciated of the candidate, in advance of allowance out of offers and the end of your contract. Bhalotia Engineering Performs (P.) Ltd. versus. CIT 275 ITR 399 (Jhar.)