| Question And Answer | |
|---|---|
| Subject: | CASH PAID ON PURCHASE OF PROPERTY |
| Category: | Income-Tax |
| Querist: | VIMAL KUMAR |
| Answered by: | Law Intern |
| Tags: | section 56(2)(x) |
| Date: | June 20, 2026 |
I HAVE ENTERED IN TO AGREEMENT TO PURCHASE THE LAND AND PAID 24 LAKH IN CASH ON 2011-12
THE SECTION 56(2)(x)(b) CONTAIN THAT ANY SUM PAID BY BANK NOT CASH AS THE AGREEMENT WAS 2011-12 BUT REGISTRY DONE IN 2021-22 AT SAME RATE BUT THE STAMP DUTY RATE WAS INCREASES DUE TO GOVERNMENT DECISION
THAT MY QUESTION IS THAT THE ASSESSING OFFICER ASK ME THAT U MUST BE PAID THAT TIME AMOUNT THROUGH BANK
IN FULL OR PART OTHERWISE THAT IS TREATED DIFFERENT IN INCOME FROM OTHER SOURCES
WHAT I HAVE TO REPLY
You will have to submit the agreement dated 2011-12 which mentions the total consideration as ₹24 lakh. Also provide any other evidence (affidavit, bank statements showing source of cash if available, witness statements, etc.) to prove that the payment was genuinely made in 2011-12 and that the registered deed was only for the same agreed transaction.
This will show that there was no “inadequate consideration” at the time of agreement. The transaction was at arm’s length as per prevailing rates in 2011-12 and so section 56(2)(x) cannot be invoked.