Delhi: Cash transactions of property worth Rs 20K or above to come under I-T scanner

The Income Tax department has initiated a drive against property purchases where the buyer or sellers indulge in cash transactions ranging over Rs 20,000.

This will help to tackle to block flow of black money in the national capital. "I-T department has scanned all the registries done from June 1, 2015, to December 2018 where the cash payment above Rs 20,000 was made," a senior I-T Department official said, requesting anonymity.

The assessment officer of I-T Department will start sending notices to both the seller and the purchaser from next month. The seller will be asked to pay the penalty of an equal amount if he has accepted cash above Rs 20,000.

Previously, in order to curb the generation of black money by way of dealings in cash in immovable property transactions, Section 269SS of the Income-Tax Act affected some changes in the realty sector in 2015.

As per the tax law formulated by the Central Board of Direct Taxes (CBDT), which is effective from June 1, 2015, any transaction in real estate including agriculture land shall be required to be made through account payee cheque or real-time gross settlement (RTGS) or electronic funds transfer if the amount is Rs 20,000 or above.

If the cash transaction beyond the limit is done, then a penalty of an amount equal under Section 271 D of Income Tax Act will be imposed on a seller who accepts cash or refund of advance is made in cash by the seller of the property.