The Income Tax Department (I-T) has sent notices to about 2,000 property sellers who took Rs 5 lakh or above in cash while selling their assets between June 2015 and December 2018, a senior official said on Saturday.
“To start with, we have sent notices to those property buyers and sellers who paid or received Rs 5 lakh and above in cash. Once we settle these cases, we will focus on those violators who had paid or received cash below Rs 5 lakh,” the official told ANI.
In 2015, Section 269SS of the Income Tax Act introduced some changes for the realty sector to curb generation of black money.
According to the Central Board of Direct Taxes (CBDT), any transaction in real estate, including agricultural land, has to be made through account payee cheque or real time gross settlement (RTGS) or electronic funds transfer if the amount is Rs 20,000 or above.
If a transaction is done in cash from June 1, 2015 onwards, then a penalty of an equal amount equal under section 271 D of the Income Tax Act will be imposed on the seller who accepts cash.
On January 19, ANI reported that the Income Tax Department will soon start a massive drive against such property sellers.
Officials visited all 21 sub-registrar offices in the national capital and scanned all property registries from June 1, 2015, to December 2018 which showed cash payments of above Rs 20,000. This is the biggest proof of law violation.
Notices have been sent to both sellers and buyers. “We will also ask the source of money with buyers,” said the official.