Income Tax Notice: If you are going to buy a house, or are planning to buy in future, then this news is for you. Actually, if you have paid the property in cash within the limit of more than 20,000, then the Income Tax Department can send you a direct notice.
If you are going to buy a house, or are planning to buy in future, then you should know about the rules of the realty sector very well. Because you cannot do 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, the Income Tax Department can send you a direct notice.
Not only this, according to Section 269T of the IT Act, if the property transaction is cancelled, then even after returning the amount, if the amount exceeds Rs 20,000, the transaction will have to be done by cheque. Here also you may be charged 100% penalty on the amount if the repayment is done in cash.
According to the report, such farmers who are not taxed on any other income, if they are selling their land, they do not come under this section. Second, if any transaction is taking place for immovable property worth Rs 30 lakh or more, you will have to report it to the Income Tax authorities. Otherwise, you may get a notice from the Income Tax Department.
Cash transaction limit-
Explain that if you have spent more than Rs 20,000 in cash in the purchase of property, then the Income Tax Department can send you a direct notice. And to curb black money, there are separate income tax rules on the use of cash in real estate transactions.
Tax Saving Scheme-
If you want to take advantage of tax savings, then you should never deposit health insurance premium in cash. According to the Income Tax Act, if the insurance premium 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 premium for health insurance should always be deposited through the bank only.
Heavy fine will be imposed on the recipient of cash-
There are many cases in which the person is taking payment in cash, then it becomes his responsibility not to receive payment in cash. In such a situation, if any kind of fine is imposed, then it will be his responsibility to pay the fine. It is the responsibility of the recipient of the money not to accept the money in cash because the person paying the cash can also retract. That’s why you should always transact through bank or through cheque.
