Transaction above Rs 20000 has to be done through check or other modes of transfer.
Section 271D makes it mandatory for the Joint Commissioner of Income Tax to levy this penalty without any exemption or waiver.
On June 1, 2015, transactions in immovable properties above Rs 20,000 were banned. The government has made these changes to curb black money. Reportedly, changes were also made in 269T, 271D and 271E of the Income Tax Act. As per section 269SS, if a person is involved in a transaction involving immovable properties exceeding Rs 20,000, he shall be liable to 100 per cent penalty. As part of the penalty, he will have to deposit the entire proceeds of the property sold to the Income Tax Department.
Section 271D makes it mandatory for the Joint Commissioner of Income Tax to levy this penalty without any exemption or waiver.
Section 269T of the Income Tax Act
The Act prohibits a person from depositing or repaying a specified amount, or loan. It can be repaid by bank draft through account payee or account payee check through the electronic clearing system of the bank account. Repayment can be done only under these conditions-
The deposit amount of the deposit or loan including the interest amount is Rs. 20,000 or more, or,
The aggregate amount of the deposit, inclusive of interest amount held by a person in his name or with any person, is Rs. 20,000 or more.
In other words, a person is not allowed to deposit or repay a loan in cash if the amount is equal to Rs. 20,000 or more under section 269T of the Income Tax Act.
Government or any organization established by a State, Central or Provincial Act is exempted from this Act.
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Individuals are allowed to do cash transactions up to Rs 20,000. This amount will also be reflected in your registry. Transactions above that amount can be done through checks or electronic transactions.