Although not, according to the next proviso so you’re able to Section 269SS, in which both depositor as well as the person are experiencing farming money as they are perhaps not inside the acknowledgment of every other nonexempt income, Area 269SS can get zero software.

Typically, as per the terms off Part 269SS, a guy try not to discover improves offered regarding immovable possessions out-of Rs. 20,000 or maybe more in dollars. 20,one hundred thousand or higher in respect regarding idea for sale away from assets might be prone to penalty significantly less than area 271D of one’s Act.

The new proviso so you can area provides “Provided after that that conditions on the area will maybe not pertain to the financing or put otherwise given contribution, where people out-of just who the loan otherwise put otherwise given share is actually removed or approved therefore the people because of the which the fresh financing or deposit or specified share is removed otherwise accepted, try each other that have farming income and you may neither of them keeps people earnings rechargeable so you can income tax less than that it Work.” It determine that anticipate out-of deposit/ mortgage /given share shall perhaps not focus specifications regarding sec 269SS in which each other the latest people are agriculturists and you can each other features money lower than earliest different restriction

Q. Mr. Lal Singh bought an agriculture home to own Rs. step 1,80,100 within the cash out of Mr. Nijjar Singh. Both of them is actually agriculturists and you may do not require possess money exceeding the essential difference restriction. Whether or not Sec.269SS be relevant on them and you may if penalty you/s 271D could be imposed on it?.

Ans. It is getting detailed one sec 269SS works closely with receipt away from given contribution and you can factor for the point contains the meaning off given sum “brings in one sum of money receivable, whether given that get better if not, with regards to transfer out-of an immovable possessions, whether or not the transfer occurs.” It covers just get better related to immoveable assets, also money received within time of transfer out-of property.

Yet not, since the both Mr. Lal Singh and you may Mr. Nijjar Singh is actually agriculturists and you may each other have earnings less than very first exception limitation, sec 269SS will not relevant in it. Mr. Nijjar Singh have received ‘specified sum’ apart from account payee cheque/ write or ECS. However, this can perhaps not amount to ticket away from sec 269SS and you will hence, punishment you/s 271D should not be enforced.

But not, the question one to comes up we have found if or not it position would keep to put on actually where product sales consideration paid back since pay day loan has been confronted with TDS significantly less than Section194-IA of the Operate

The solution create are still same even if the homes are other than simply farming residential property due to the https://perfectloans24.com/installment-loans-hi/ fact different considering isn’t about sorts of property. Instead, this new exemption is actually for the latest agriculturists. Thus, sec 269SS will not be applicable in cases like this.

Because the bucks received because of the Mr

In the event the planning on the land are Rs. 5,00,000 the clear answer often nonetheless continue to be exact same. Although not, in this instance sec 269ST could be appropriate. Sec 269ST provides the conditions of section will maybe not apply at transactions of characteristics described when you look at the point 269SS.It’s become listed that exchange anywhere between a couple agriculturists who are that have earnings less than taxable limit is not included in sec 269SS so because of this sec 269ST might be applicable on it.

Nijjar singh is higher than Rs. dos,00,one hundred thousand specifications regarding sec 269ST are broken. Punishment amounting in order to Rs. 5,00,100000 would be implemented u/s 271DA.

Point 269SS might have been inserted however with a view to quit purchases into the black colored currency and to make certain costs from Rs. 20,100 and you will over, try traceable to help you purchases using a lender. Share software currency partakes the type out-of a deposit, because it is repayable within the specie to your refusal in order to allot shares and that’s repayable if the recalled because of the candidate, in advance of allotment off shares therefore the achievement of your own price. Bhalotia Engineering Performs (P.) Ltd. compared to. CIT 275 ITR 399 (Jhar.)