Yet not, according to the next proviso so you can Part 269SS, in which both the depositor plus the receiver are experiencing agricultural income and tend to be perhaps not in receipt of any almost every other nonexempt money, Point 269SS get zero app.
Generally, as per the specifications regarding Section 269SS, a guy cannot located improves available from immovable assets out of Rs. 20,100000 or maybe more during the dollars. 20,100000 or even more according off thought for sale out of possessions is prone to penalty below part 271D of your Act.
Brand new proviso in order to point provides “Considering then the provisions associated with section shall not use to the loan or deposit otherwise specified share, where the people of exactly who the loan otherwise put otherwise specified share is actually taken or accepted and the individual of the exactly who the fresh new financing or deposit or specified contribution are removed or recognized, are both having agricultural income and you can neither of them has actually people income chargeable in order to taxation around this Operate.” They specifies one to greet from deposit/ loan /specified sum should perhaps not interest arrangements from sec 269SS in which one another the newest activities was agriculturists and you will each other features income below first exception limitation
Q. Mr. Lal Singh ordered a farming land having Rs. step one,80,100 inside cash off Mr. Nijjar Singh. Both are agriculturists and you will not one of them has actually money surpassing the basic exemption limitation. Whether or not Sec.269SS become relevant on them and you may if or not punishment you/s 271D could well be implemented on them?.
Ans. It is become listed you to sec 269SS works closely with bill regarding specified contribution and you may factor into the area contains the definition away from specified sum “brings in people amount of money receivable, whether once the advance or otherwise, when considering import from an immovable possessions, perhaps the transfer takes place.” It talks about not only improve regarding immoveable assets, also money gotten at https://perfectloans24.com/payday-loans-mn/lucan/ time of transfer out of assets.
However, once the one another Mr. Lal Singh and you will Mr. Nijjar Singh is actually agriculturists and you may both enjoys income less than first different maximum, sec 269SS should not applicable in it. Mr. Nijjar Singh have obtained ‘given sum’ besides account payee cheque/ draft or ECS. But this will not amount to pass away from sec 269SS and you may which, penalty you/s 271D should not imposed.
Yet not, the question one to appears here’s if or not this reputation perform remain to use even in which the sale idea paid off due to the fact payday loans could have been exposed to TDS below Section194-IA of the Work
The answer manage are still same even when the home are almost every other than just farming belongings given that exception given is not related to brand of property. As an alternative, new exception is actually for the agriculturists. For this reason, sec 269SS are not relevant in this instance.
Just like the cash gotten because of the Mr
In case the believe toward home is actually Rs. 5,00,one hundred thousand the clear answer often still will still be same. not, in this case sec 269ST would be relevant. Sec 269ST will bring your specifications from the area should perhaps not apply at transactions of your characteristics described from inside the section 269SS.It’s to get noted your exchange between several agriculturists that having earnings below taxable limit is not covered by sec 269SS so because of this sec 269ST will be appropriate involved.
Nijjar singh exceeds Rs. dos,00,100 terms from sec 269ST is violated. Penalty amounting so you can Rs. 5,00,000 is going to be enforced you/s 271DA.
Point 269SS could have been entered definitely which have a viewpoint to prevent purchases for the black colored currency and to guarantee that payments regarding Rs. 20,100000 and you may a lot more than, is traceable so you’re able to deals thanks to a financial. Express application money partakes the smoothness of a deposit, because it’s repayable into the specie with the refusal so you can allot shares which is repayable if remembered from the candidate, ahead of allowance from shares as well as the completion of one’s deal. Bhalotia Engineering Work (P.) Ltd. compared to. CIT 275 ITR 399 (Jhar.)
