The Income Tax Department has commenced taking actions against unidentified /nameless property and black money. The Department has issued notices to 2000 people who have made cash transactions of more than Rs. 5 lakhs in the purchase of properties. The investigation on cash transactions of more than 20 thousand is also on the verge to begin.
Cash Transactions Not Exceeding Rupees 20 Thousands
The amendments were made in section 269SS of the Income Tax Act to curb black money, in the year 2015. According to the Central Board of Direct Taxes (CBDT), this amendment defines transactions of more than 20 thousand rupees in the purchase and sale of any kind of property, as illegal.
Income tax department will soon initiate the investigations on these transactions as well. For now, these transactions are on hold.
Provision of Penalty Equivalent to the Transaction Amount
According to CBDT, amendments introduced in the section 269SS of Income Tax ACT, after the 1st June 2015, binds the cash transactions of purchase/sale of property exceeding Rs 20,000 with the penalty of an equal amount under section 271D .
That means Section 271D imposes a penalty of the same amount as the value of the property for the transactions which are defined as illegal as per the altered section of 269SS of income tax act.