People who’s located having obtained get better dollars of Rs

However, according to the second proviso to Part 269SS, in which both the depositor together with individual are receiving agricultural earnings and are also maybe not from inside the acknowledgment of any other nonexempt earnings, Part 269SS will have no application.

Generally speaking, according to the terms away from Area 269SS, men don’t receive advances on the market out-of immovable assets regarding Rs. 20,000 or higher within the dollars. 20,100 or more in respect out-of consideration on the market out-of possessions is liable to penalty lower than section 271D of Operate.

The fresh new proviso to help you area provides “Offered after that that arrangements regarding the part will maybe not implement to your financing otherwise put otherwise given contribution, where in actuality the people of just who the borrowed funds or put otherwise specified share is removed otherwise accepted additionally the person because of the who the fresh new financing otherwise deposit otherwise specified contribution are pulled or acknowledged, are one another which have agricultural earnings and you will none of them possess any income rechargeable so you’re able to taxation around so it Work.” It determine that allowed away from put/ mortgage /specified sum will not desire conditions off sec 269SS where one another the new functions is actually agriculturists and you may both provides money lower than first exemption restriction

Q. Mr. Lal Singh ordered an agriculture land having Rs. 1,80,000 in dollars of Mr. Nijjar Singh. They both is actually agriculturists and you will do not require has income exceeding might exclusion restriction. Whether or not Sec.269SS getting applicable in it and if or not punishment you/s 271D could be implemented on it?.

Ans. It is getting noted you to sec 269SS works together with acknowledgment off given sum and you may reasons to the point gets the definition away from given share “produces people amount of money receivable, if or not because improve or otherwise, when it comes to import out-of an immovable assets, perhaps the import occurs.” They discusses just progress linked to immoveable possessions, and money obtained within lifetime of import off assets.

But not, because the one another Mr. Lal Singh and you can Mr. Nijjar Singh is agriculturists and both has money lower than very first exclusion limitation, sec 269SS shall never be appropriate on them. Mr. Nijjar Singh have obtained ‘given sum’ besides membership payee cheque/ draft otherwise ECS. But this can maybe not amount to admission regarding sec 269SS and you can and that, penalty u/s 271D should not be implemented.

Although not, the question that pops up let me reveal whether so it updates perform keep to utilize even where in actuality the sale planning paid due to the fact payday loan has been confronted with TDS lower than Section194-IA of the Act

The answer create remain same even when the land is actually almost every other than simply farming property since exception considering isn’t linked to sorts of property. Instead, this new exception to this rule is for the new agriculturists. For this reason, sec 269SS will never be relevant in such a case.

Since bucks received because of the Mr

When your attention to the homes was Rs. 5,00,100 the answer commonly still will always be exact same. But not, in this case sec 269ST could well be relevant. Sec 269ST brings your provisions from the section will not apply at purchases of character regarded for the area 269SS.It’s are indexed that exchange between one or two agriculturists who are that have earnings lower than nonexempt maximum isn’t protected by sec 269SS and hence sec 269ST will likely be appropriate in it.

Nijjar singh is higher than Rs. dos,00,100000 conditions of sec 269ST are broken. Penalty amounting so you’re able to Rs. 5,00,000 can be enforced you/s 271DA.

Part 269SS might have been registered naturally having a perspective to avoid transactions from inside the black money also to make certain that repayments off Rs. 20,one hundred thousand and you can over, was payday loan in Woodstock traceable to help you purchases owing to a lender. Show app currency partakes the type out of a deposit, because it’s repayable during the specie with the refusal to allot offers and is repayable in the event the appreciated because of the candidate, ahead of allocation from offers as well as the completion of deal. Bhalotia Technologies Work (P.) Ltd. vs. CIT 275 ITR 399 (Jhar.)

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