Real Estate Transactions and Sections 269SS & 269T of Income Tax Act,1961
In order to curb the black money by way of dealings in cash in immovable property transactions, sections 269 SS & T were amended (in the last budget itself) with effect from 01.06.2015 to the effect that no person shall accept from any person any loan or deposit or any sum of money, whether as advance or otherwise in relation to transfer of an immovable property otherwise than an account payee cheque /draft or by an electronic clearing system through a bank account, if the amount of loan or deposit or such specified sum is Rs. 20,000 or more. Likewise, no person shall repay any loan or deposit made with it or any specified advance received by it, otherwise than an account payee cheque /draft or by an electronic clearing system through a bank account, if the amount or aggregate amount of loan or deposit or specified advances is Rs. 20,000 or more. The specified advance shall mean any sum of money in the nature of advance, by whatever name called, in relation to transfer of an immovable property whether or not the transfer takes place. Failure to comply with the said procedure will attract penalty, which is equal to the amount accepted /repaid.
Since this new procedure has not been informed to the offices of ‘Sub Registrar’ and further since it has not reached the ‘Document Writers’ almost all the transactions including advance and settlement are carried out in cash, the value of which runs to several lakhs of rupees. These innocent people will land in difficulties while the transactions are viewed by Income Tax Authorities. It is the duty of the Income Tax Department and the concerned State Governments to give wide publicity and to give instructions to the offices of all Registrars to strictly deny registration if the transactions are carried out in cash in order to save innocent public from the heavy penalty by the Income Tax Department.