What not to do in 2014 for tax & investment planning ?

POSTED BY Bond Bhai ON May 31, 2014 10:11 am COMMENTS (2)

I saw this article on moneycontrol.

Link Here: http://www.moneycontrol.com/news/tax/what-not-to-do2014-for-taxinvestment-planning_1028448.html

There a few points which i did not understand why the author has mentioned this, like :

10. Never ever think of taking cash loan of an amount exceeding Rs. 20,000 from anyone in the world or else be ready to pay the penalty equal to the loan amount.

11. Whatever be your urgency during the course of your business or profession but never ever think of making cash payment of more than Rs. 20,000 to one person or else your expense even genuine will be disallowed by the Tax Department.

13. Don’t think of making purchase of property more than Rs. 50 lakhs or else if you want to purchase the property more than Rs. 50 lakhs, be ready to deduct tax at source at the rate of 1 per cent.

Can anybody help in understanding this? A bit confused!

Thanks

BB!

2 replies on this article “What not to do in 2014 for tax & investment planning ?”

  1. rockingguy says:

    10. Section 269SS of the Income Tax Act, 1961 does not allow taking cash loans on amount of above rs. 20000/-

    11. Similarly, Section 269T prohibits the re-payment of any loan or deposit on amount of above rs. 20000/-

    If IT department finds out that you are invloved in such transactions, then they can levy penalty as high as the amount itself. This law exists to prevent tax evasion. Always, use bank cheques or demand draft
    http://www.business-standard.com/article/pf/don-t-lend-or-borrow-more-than-rs-20-000-in-cash-113020600100_1.html

    12. If the cost of home exceeds rs. 50 lakhs, then you have to pay TDS
    http://articles.economictimes.indiatimes.com/2013-06-03/news/39714591_1_tax-online-50-lakh-immovable-property
    https://www.tin-nsdl.com/TDS/TDS-FAQ.php

    The rate is 1% if PAN is provided, else 20% if seller does not have disclose his/her PAN. This rule is not applicable on rural agricultural land

  2. Hemanth Chandra says:

    11. I think he is telling to make payments > 20k only by cheque or DD but not by cash….

    Remaining 2…. I didn’t understand.

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