Cash transactions for sale of property (2024)

Hi

The income tax act restricts accepting cash in excess of Rs. 20,000 in a real estate transaction. So, you cannot accept cash consideration on sale of property.

The property is to be registered at actual sales consideration.

Dear Sir,

Hope you are doing well !!

A Penalty of 100% can be levied on Cash Payment. A penalty will be applicable on Seller.An action can be taken against buyer also.

Also, note that all the cash transactions are being monitored. Any unusual cash transactions from a bank account will immediately put you under the scrutiny of income tax department.

Any cash transaction of more than 20,000 should be done responsibly and carefully.

Yes, you should make sure that correct amount is mentioned during registration.

Hello,

Accepting cash more than Rs. 20,000 is restricted. A penalty of 100% of the amount is levied for such cash transactions.

Though the sale of rural agricultural land is taxfree still this penalty can be levied for the cash transactions.

Yes, the correct amount should be declared in registration.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

You must avoid accepting cash for sale of land as there is a penalty of 100% if you accept such consideration.

Also only rural agricultural land is free from tax not all.

Being free from tax doesn't mean they won't charge registration fee as one is state tax and another is central tax.

You must mention the correct value.

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Thank you

Receiving cash for sale of immovable property is illegal. It does not matter if you register it with correct amount or you deposit it in bank account. Receiving cash is itself not legal.