Yet not, according to the second proviso so you’re able to Point 269SS, in which both depositor plus the recipient are receiving farming money and are usually not inside receipt of every other taxable income, Section 269SS will get no application.
Generally, according to the terms away from Area 269SS, one dont located improves for sale from immovable possessions out-of Rs. 20,one hundred thousand or maybe more inside bucks. 20,100 or maybe more according out of idea on the market away from assets will be liable to punishment lower than part 271D of your Work.
The fresh new proviso so you’re able to part will bring “Provided further your provisions of this point will maybe not implement to the loan or deposit otherwise specified sum, the spot where the individual away from who the loan otherwise deposit or specified share are drawn otherwise acknowledged plus the person from the whom the loan or deposit or specified sum try drawn otherwise acknowledged, was one another which have agricultural earnings and neither ones possess people earnings chargeable in order to taxation below it Act.” They determine you to acceptance out-of put/ loan /specified contribution shall maybe not attention conditions regarding sec 269SS where one another the fresh new events is agriculturists and you will each other have income lower than earliest exception to this rule restrict
Q. Mr. Lal Singh ordered a farming residential property having Rs. step 1,80,100000 for the dollars off Mr. Nijjar Singh. Both of them try agriculturists and you can do not require features income exceeding the essential exclusion limitation. Whether Sec.269SS be applicable on them and you can whether or not penalty you/s 271D might be enforced on it?.
Ans. It is are listed you to definitely sec 269SS works closely with bill from given share and you will reasons for the part has the definition away from specified contribution “brings in people sum of money receivable, whether or not while the improve otherwise, regarding import regarding an enthusiastic immovable property, perhaps the transfer takes place.” They discusses besides advance connected with immoveable property, as well as currency obtained from the lifetime of import out of property.
But not, while the both Mr. Lal Singh and you can Mr. Nijjar Singh was agriculturists and you may one another features money less than basic difference restrict, sec 269SS should not appropriate on them. Mr. Nijjar Singh have received ‘specified sum’ other than account payee cheque/ draft or ECS. But this may perhaps not total violation of sec 269SS and you may and that, penalty u/s 271D should never be enforced.
However, practical question that comes up we have found whether which position do continue to put on actually where in actuality the sales thought reduced since the payday loans might have been subjected to TDS less than Section194-IA of your Work
The solution manage are exact same even if the house are other than agriculture land because the exception to this rule provided is not linked to variety of possessions. As an alternative, the fresh new difference is for this new agriculturists. Ergo, sec 269SS won’t be relevant in this instance.
As bucks obtained because of the Mr
When your planning towards the home try Rs. 5,00,000 the clear answer usually nevertheless remain same. But not, in cases like this sec 269ST would-be appropriate. Sec 269ST brings the terms associated with section should not connect with purchases of your nature labeled inside point 269SS.It’s to be detailed that purchase between a couple of agriculturists who happen to be that have earnings below nonexempt limitation isn’t covered by sec 269SS so because of this sec 269ST might be applicable in it.
Nijjar singh exceeds Rs. dos,00,one hundred thousand conditions regarding sec 269ST is violated. Penalty amounting so you’re able to Rs. 5,00,100 might be enforced you/s 271DA.
Area 269SS has been inserted naturally with a standpoint to eliminate purchases inside black currency and guarantee that money off Rs. 20,one hundred thousand and you may above, are traceable so you’re able to deals courtesy a lender. Share application currency partakes the smoothness from a deposit, because it’s repayable for the specie into refusal so you can allocate shares and that’s repayable in the event the recalled because of the candidate, before allotment from offers additionally the achievement of your price. Bhalotia Systems Really works (P.) Ltd. compared to. CIT 275 ITR 399 (Jhar.)
