What is Section 269ST for cash transactions in real estate?

Section 269ST of the Income Tax Act, 1961 prohibits any person from receiving an amount of ₹2 lakh or more in cash whether in a single transaction, multiple transactions from the same person on the same day, or transactions relating to one occasion or event. In real estate, this section prevents large cash payments in property transactions.

How Section 269ST Applies to Real Estate

• No single property payment can be received in cash if it is ₹2 lakh or more.
• Multiple small cash payments on the same day from the same buyer are aggregated.
• Multiple payments for the same property deal are treated as 'one event' cannot be split to avoid the limit.

Penalty for Violation

100% penalty on the receiver equal to the entire cash amount received. The receiver (seller, developer, or agent) bears the penalty not the payer.

Difference Between 269SS and 269ST

• Section 269SS: Applies to loans, deposits, and advances ₹20,000 threshold.
• Section 269ST: Applies to all receipts (not just loans/deposits) ₹2 lakh threshold.

Section 269ST, combined with 269SS, effectively eliminates cash as a legally safe medium for significant real estate transactions. All property-related payments booking amounts, instalments, deposits, and final consideration must be made through documented digital channels to avoid severe penalties.