People who’s found for obtained progress bucks out-of Rs
not, according to the next proviso to Point 269SS, where both depositor and the recipient are experiencing agricultural earnings and generally are maybe not in bill of any almost every other nonexempt income, Part 269SS will get no app.
Usually, according to the specifications away from Area 269SS, one don’t located enhances available from immovable property of Rs. 20,100 or maybe more for the dollars. 20,100 or higher in respect regarding thought for sale off possessions will be prone to penalty around point 271D of one’s Operate.
New proviso in order to point provides “Provided next your terms associated with the area shall perhaps not implement to any loan otherwise deposit or given contribution, in which the people away from whom the mortgage or deposit or specified share is drawn or recognized in addition to people because of the which the brand new loan otherwise put or specified share try removed otherwise acknowledged, was each other with agricultural income and you may neither of these possess one earnings chargeable in order to tax under it Work.” It specifies you to definitely desired off put/ financing /given sum will perhaps not notice terms from sec 269SS where both the brand new parties was agriculturists and you will one another has earnings below very first exemption restrict
Q. Mr. Lal Singh bought an agriculture residential property to possess Rs. 1,80,one hundred thousand inside the bucks personal loan online Nevada of Mr. Nijjar Singh. Both of them is actually agriculturists and you will not one of them possess earnings exceeding the fundamental different restrict. Whether Sec.269SS feel applicable on it and you will if or not punishment you/s 271D will be enforced on it?.
Ans. It’s becoming noted you to sec 269SS works with bill off specified share and reason for the part has the definition out-of specified share “brings in people sum of money receivable, whether just like the improve if not, in terms of transfer of an enthusiastic immovable assets, whether the import occurs.” They talks about not only improve associated with immoveable property, and in addition money obtained during the duration of import regarding possessions.
However, due to the fact each other Mr. Lal Singh and you can Mr. Nijjar Singh is actually agriculturists and you can one another enjoys income less than earliest exemption restriction, sec 269SS should not be relevant to them. Mr. Nijjar Singh have obtained ‘specified sum’ apart from membership payee cheque/ draft otherwise ECS. But this will not amount to ticket away from sec 269SS and which, punishment you/s 271D should not be implemented.
Yet not, the question that appears here is whether or not this standing manage continue to put on also where revenue believe reduced while the pay day loan has been subjected to TDS around Section194-IA of the Operate
The answer would are nevertheless same even if the property are almost every other than agriculture home once the exemption considering isn’t linked to brand of assets. Instead, brand new exemption is for the fresh new agriculturists. For this reason, sec 269SS may not be appropriate in cases like this.
As dollars obtained from the Mr
If the thought to your land is Rs. 5,00,000 the clear answer have a tendency to nonetheless will always be exact same. But not, in this case sec 269ST will be relevant. Sec 269ST will bring your provisions on the part will maybe not connect with transactions of character labeled inside the area 269SS.It is to be detailed your deal anywhere between several agriculturists that are that have money below taxable restriction isn’t covered by sec 269SS so because of this sec 269ST is going to be relevant involved.
Nijjar singh is higher than Rs. 2,00,000 conditions off sec 269ST is actually violated. Penalty amounting to help you Rs. 5,00,one hundred thousand should be implemented you/s 271DA.
Part 269SS could have been entered without a doubt which have a viewpoint to eliminate deals for the black money and also to make certain repayments off Rs. 20,one hundred thousand and you will a lot more than, are traceable so you’re able to transactions by way of a financial. Express application money partakes the smoothness out of in initial deposit, since it is repayable within the specie on the refusal to allot offers that’s repayable when the remembered from the applicant, ahead of allotment regarding offers together with conclusion of your own price. Bhalotia Engineering Work (P.) Ltd. versus. CIT 275 ITR 399 (Jhar.)