Use Cashless Transaction to Buy A Property
Jun 28, 2017 Home Trading Steps
Since Prime Minister Modi declared Rs 500 and Rs 1000 notes illegal on 8th November, the market has faced a currency crunch. For a couple of months, there was a shortage of cash in the country and the government made efforts to keep the required amount of new currency in circulation. The new measure was implemented and people were encouraged to use online transactions and cashless payment for the same. This was to reduce the dependency of people of cash but to venture into to the world of digital money.
From 1st April this year, the government has put a ban on the cash based transaction of more than Rs 2 lacs or more on a single day or towards a single transaction or transaction related to a single event or a person. This is mentioned in the new section of the Finance Act, 2017 under section 269 ST. in the finance budget proposed this year, the limit was Rs 3 lacs, but it was further reduced to Rs 2 lacs.
Income tax department is now going after those who might be flouting the norms.
The Finance Department recently issued the warning that any transaction more than 2 lacs will attract a penalty of equal amount. Department issue a public notice stating, “Contravention of Section 269ST would entail levy of 100 percent penalty on the receiver of the amount.” Those who have knowledge of any such department can also tip the department regarding the same.
In real estate industry, cash aid to the seller to notify them about your genuine intention will get them in trouble. Therefore, it is the best interest for the buyer as well as the seller to keep the transaction as cashless as possible. This will help in keeping the record of the transaction. If one party fails to keep the terms and conditions of the agreement, the other party can use the trail of money as a proof.
There is, however, an exception. The restriction is not applicable to any receipt by the government, banking companies or post office.
From 1st April this year, the government has put a ban on the cash based transaction of more than Rs 2 lacs or more on a single day or towards a single transaction or transaction related to a single event or a person. This is mentioned in the new section of the Finance Act, 2017 under section 269 ST. in the finance budget proposed this year, the limit was Rs 3 lacs, but it was further reduced to Rs 2 lacs.
Income tax department is now going after those who might be flouting the norms.
The Finance Department recently issued the warning that any transaction more than 2 lacs will attract a penalty of equal amount. Department issue a public notice stating, “Contravention of Section 269ST would entail levy of 100 percent penalty on the receiver of the amount.” Those who have knowledge of any such department can also tip the department regarding the same.
In real estate industry, cash aid to the seller to notify them about your genuine intention will get them in trouble. Therefore, it is the best interest for the buyer as well as the seller to keep the transaction as cashless as possible. This will help in keeping the record of the transaction. If one party fails to keep the terms and conditions of the agreement, the other party can use the trail of money as a proof.
There is, however, an exception. The restriction is not applicable to any receipt by the government, banking companies or post office.
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