Public opinion on the Supreme Court's ruling is mixed, with cautious approval dominated by concerns over legality, compliance, and the enforcement of tax regulations. While some appreciate the step towards tackling black money and enhancing financial transparency, others express skepticism about the complexity and fairness of implementation, fearing harassment and scrutiny from authorities. There's also confusion about the law's specifics and potential consequences, driving discussions on financial accountability and the need for clarity.

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Indian Citizens

Yes TDS deduction is necessary in case of Such a Purchase transaction. 
Buyer has to deduct TDS @1% if the Sale Transaction is above 50 lakh under Section 194IA and file a Form 26QB on income tax website. After doing so, Buyer has to furnish Form 16B generated after filing 26QB to the Seller so that Seller can claim TDS while filing their own ITR.

Now filing of 26QB attracts a penalty of 200 per day + Interest on TDS not deduction @1% p.m and Interest on Non Deposit @1.5% p.m. till the Default continues.


It is always advised to consult a CA when selling or buying a property.


OP can refer this article for more details : https://cleartax.in/s/how-to-file-tds-on-sale-property

_chaccountant

Which Financial year was the Purchase transaction in ?
FY 22-23?

Is it necessary to get the Form16B from the buyer end for the TDS.

sunil21h

Regarding TDS, No TDS deduction required if the share of joint owners individually does not exceed 50 Lakhs even if total consideration exceeds 50L. [ ITAT's decision dt 10-12-2018 in Vinod Soni Vs. ITO ]

PhysicalEase3792

File the TDS asap. Pls contact a local CA or you can inbox me with details. 

&amp;#x200B;

1.4 Cr thing can be ignored. But dont ignore paying TDS asap. 

&amp;#x200B;

Surprised that no one told you this in the registration office !!!!

&amp;#x200B;

 We are a CA firm located in blr. If you have any further queries or need help, please feel free to DM.

LengthinessMost4508

Dream 11 really gives 1 crore ... i am more interested to know how you won and in which game ???

8 lakh is too much for a normal individual to pay in cash...

Ecstatic_Potential67

Most advocates prefer cash. Its not specific to MACT cases. 
As for legal implications, nothing requires you to pay an advocate in a particular mode of payment. If you’re fine paying the fee, pay cash. It doesn’t matter

akshitc31

Ask the lawyer to Meta™ off. Pay by cheque or bank transfer

[deleted]

Payments more than 2 lakh cannot be made in cash if I remember correctly.

schmick1311

That cash payment isn’t legal. As for the quantum of fee, difficult to say if it is justified. Given the general incompetence of the bar, I’d say in all likelihood it isn’t justified even if nothing else is considered.

Cold_Entrance1925

Advocate here,


I work on  such cases; usually, most lawyers are not aware of these kinds of cases. Coming to the point, you have the option either to resolve it one by one by going to every single police station, but it will take lots of time, money, and patience. The second option is that you can skip this whole procedure by issuing legal notices to all the concerned police stations and annex all the evidence showing the legitimacy of the transaction and request them to give an NOC to the Bank. If they don't cooperate, then directly file a writ petition before your state's High Court, and it shall be enough. For more tailored advice, you can reach out.

Electrical_Meat_954

Lawyer here. Most I've worked on the account frozen by 5 different LEAs. It's not a difficult job but you need to be patient. Try the approach of one by one and not all at once. Some cases may be resolved in very less amount, others not so. Depends on case to case. However, do not hesitate to talk to Police, nothing can be done to your based on the freeze, which isn't resolvable.

Odd-Athlete-8860

[NAL] - May I know what's the reason states for freezing your account?

sanv84

Get a good lawyer and file a writ. Typically freezing of bank accounts can only be done in the exercise of powers of investigation, search and seizure. What this means is that the act of freezing of the account has to be done after the registration of an FIR, and identification of your account's role in the alleged offence. Further, once the account is frozen, it is the responsibility of the investigating officer to send you notices seeking clarifications in a timely manner. While you yourself may be clean, the guys you're trading crypto with may be under investigation. Filing a writ may not get you the relief of refreezing, if the seizure itself was lawful, but you can get directions for expeditious investigation on account of the hardship caused to you. While obviously, the situation is pretty bad, thankfully the attachment wasn't done by ED or SEBI. Because while cops can usually be pushed around by approaching courts, ED and SEBI are a completely different story.

kundu42

Ask banks for legal basis for the lien. It usually is a notice by the police under S. 102 of the CrPC. But it can even be a S. 91 notice which would make the whole process legally defective. Move the local jurisdictional court seeking unfreezing of your account. Alternatively, depending on the case, you could move the High Court. You may have to append details of past transactions of a similar nature to bring home how you normally transact. More specific advice cannot be provided without more details.

Hello bro my account also got frozen last month put lien amount of 4 lakhs rupees from chennai cyber cell,am scared don't have to pay back  and to fight in court also...am ready to leave rhe frozen as it is but is there any problems that i face in future like police coming to me for arresting or severe legal punishment... please advice me..

Background-Law-4160

Quick question - Why was your account frozen, though?

Does the cyber cell department freeze accounts based on their whims and fancies? #newfearunlocked

Repulsive_Bonus_1065

Neelc2002

Banks are able to dictate what their credit cards should be used for. Credit Cards are primarily meant for B2B/B2C payments, and not P2P payments. We have various methods already for P2P payments which don't involve credit.

Financial literacy of our country is quite poor. It's better if somehow credit cards are mandated to be only used for merchant transactions. 


So yeah, Rent payments shouldn't be allowed through credit

ifthingscouldsee

Rather than barring everything, it should be regulated so as to make it more transparent and convenient. Why does it matter if i use credit for rent? In the end i am paying it back at the end of the month.

kirus48

RBI just saving us from debt trap. Good initiative

idlii_vada

Like I already said, happy that a lot of people who were abusing system and rotating money will be trapped in debt for a long time. They deserved it. 

I will be betting on stocks like Poonawalla and Bajaj as a lot of them are going to make profit from these rotators month on month. 

Funny part was that they were paying more on rotation around 15-20% rather if they took a personal loan it would have been cheaper. 

RBI should make sure people who were rotating are barred from all credit for next 5 years.

And ofcourse income tax should charge them tax for all the rent they paid. The fintechs must provide this data to incometax

No-Major1509

You might get a notice from IT at the same time there is an additional 2% tax on cash withdrawals of 20 lacs and above in one financial year.
It would be better to get a Dd or transfer funds through rtgs

tiredmummyof2

If I am not mistaken cash transaction above 2L are unlawful according IT Section 269ST, unless they fall under purposes outlined in that act

darthveda

I don't know if you can even withdraw 20L in a single transaction.

These articles may help -

https://taxguru.in/income-tax/restrictions-cash-transactions-rs-2-lacs-income-tax.html

https://www.indiafilings.com/learn/cash-transaction/

&gt;The Finance Act 2017, took various measures to restrain black money and as an outcome of these measures, a new Section 269ST was inserted in the Income Tax Act. Section 269ST imposed restriction on a cash transaction and limited it to Rs.2 Lakhs per day. Section 269ST states that no person shall receive an amount of Rs 2 Lakh or more



Also: you will have to talk to the bank before withdrawing the cash to make sure that they have that much cash. IT will most likely ask for who you paid it to.

insanegenius

if you are doing it to fund under the table purchase ( i.e. showing lesser value on registration document and to circumvent stamp duty payment) then it will definitely be a problem, if you are just using your accounted money to pay above the table and this value is being accounted for in the real estate purchase and on the stamp duty/registry document, then its no issue

DrSurgical_Strike

This definitely might set off some bells, if done via a savings account. That said, I don't think you can withdraw more than 2L at one go anyway.

You could open a new current account, fund it with x, and then withdraw this in multiple transactions. 20L is a small enough amount to keep you at the bottom of the manual checks - although it might set off some automated warnings. Try to spread it over a month or so 

That said, if you're doing this to just save on stamp duty, there are a million reasons why it's a bad idea, esp when you sell it.

Do_You_Remember_2020

Of course they would. Cash transactions beyond a certain limit is disallowed. I think it is Rs 2 lakhs. Maybe even less. 

Don’t mess with  IT. Sincere advice from a person who knows.

khushraho

Dont do it, refuse to pay in cash. You are converting white money to black money.

Every quarter banks sent a large transactions report to Income tax department. If not today, some day questions will be asked.

arcanebanshee

Not a tax expert but this is what I know:

Banks are required to report to the IT department if a customer makes cash withdrawals of &gt;=50L in a FY.  From what I understand, this limit applies separately to each bank and only to withdrawals from a current account.  Also related to your question, property registrars are required to report property transactions of value &gt;=30L.

That said, even though I personally have only savings accounts, my tax consultant advises me to keep my bank transactions well below the IT limits.  I don't argue with him.  I know that ITOs can specifically ask banks for more information related to any individual whose transactions they perceive to be worth probing and my tax consultant is the one who I'll need to defend me if that happens..

NamitNasih

As other mentioned, you may have higher tax on sale and you converting your tax paid white to black. Withdrawing such large amount may get notice or flagged. So you should have some reasoning around why it was withdrawn and what was done with that.


But one thing that no one mentioned is that and obviously illegal is that you will find some businesses who will be willing to accept cheque for dummy goods purchase receipts and give you cash in hand after some deduction.

More_One_8279

skipper_52

If it's clean and accounted money in your bank account and you are withdrawing it to fund your real estate purchase (again a legal transaction going in govt records), why would there be problem?

The only problem can be if someone has unaccounted money in their bank account (which anyways is a dumb thing to do).

DahiyaAbhi

Not cash, but one of the people I know used 20L for ESOPS. The bank called him shortly after the transaction to verify if he made the purchase

Heinzketchups

You're just taking part in a massive corruption with nothing to show for and helping builder avoid all the taxes.

sustainablecaptalist

Always better to handle it electronically. Cash withdrawal transactions can be alerted.

FIREITIS

Ofcourse. Expect an IT Notice via email shortly.

you can easily tell the broker you don't have black and they'll surprise you with options so that the monkey is not on your back

SubstantialSquash3

If you have paid tax on it then nothing to be worry about

bojack_horseman1889

I asked about doing deposits/withdrawals in such range(till 50L I think) to my corporate manager from HDFC, according to them it's totally fine. Bank employee may ask for the purpose informally, that's it, it's your post-tax money after all.

I'll say, ask them about it, they are in position to answer your all questions.

ilovethrills

IT surveillance is only when you don’t pay tax on cash deposits. You can withdraw how much ever you want . Just make sure you have filed your returns.If u want more clarity ask your CA. He will say the same thing.

timetraveler1990

No,
Its your money, you have paid taxes on it already.

its generally happened when you have deposited cash of large amount.

And even if one asks (highly unlikely) you can say anything, like i need it for house renovation, any answer can work for there no logical question.

charlie1404

This is my suggestion. First take a week to transfer 10 lakhs to a different bank account.
This is what I know from experience with Citibank. For anything above 10lakhs, they'll ask you to submit a request with IT filing proofs and they'll take 2-3 days to process your request. 
If you withdraw less than 10 lakhs, you'll just need to mention the reason for withdrawal. I mentioned house renovation of a relative as reason and they were fine with it.

curiousnetizen007

Maybe a noob and somewhat unrelated question but do real estate purchases count as expenses if you're a business owner filling taxes under section 44AD? Suppose I have an income of 50-60LPA from accounted sources. Can I, as a business owner use them to buy real estate and claim it as an expense?  
Pardon me if what I'm saying doesn't make any sense!

aditya_gurjar

You most probably will be doing part of the transaction outside of paper on a REAL real estate deal. But I guess the receiver should be the one worried of making black money, not you.

-umber-

Dont withdraw it all.

Give some relative or friend an entry and get cash. If you know someone on the business community they'd do it.

rockyrosy

If you know a jeweller and have unbilled jewellery at home....ask jeweller to provide you a bill...transfer money to his account and get cash from him.....

anonac007

It's going to be a definite red flag. Heavy cash withdrawal along with purchase of property in the same year means an almost definite scrutiny in our experience.

GalacticAdvisors

May be you can sell some gold that you have and take cash payment for it?

di_skorukkamma

Make sure you have a detailed explainer ready for utilisation of that sum in case if you are flagged by tax authorities, which I suspect you would be, because you would most likely cross that threshold of 20l in an FY, you may provide ITR of last three years to your Bank to avoid TDS on withdrawal, by doing so you would reduce the probability.

ThePlatonic

The limit is 1 crore if you have filed ITR for previous three years or any of the previous three years. Beyond that you would be charged 2% TDS.

Please go through this [https://www.incometax.gov.in/iec/foportal/help/tds-on-cash-withdrawal-us-194n-faq](https://www.incometax.gov.in/iec/foportal/help/tds-on-cash-withdrawal-us-194n-faq)

Sad-Debate9780

Supreme Court mandates reporting of cash transactions over ₹2 lakh to combat tax evasion, promoting digital payments and financial transparency.

Supreme Court Ruling on Reporting Cash Transactions over ₹2 Lakh

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