Penalty on Cash Sale of Property as Per Law and under section 160. Such person shall pay a penalty of forty thousand rupees or the 10% of the amount of tax which-ever is higher. You are legally not allowed to pay more than Rs 20,000 in cash for it. According to section 269SS of Income Tax Act, while transacting Immovable Property, 100% penalty will be levied if seller has accepted an amount of Rs. 20,000 or more in cash from the buyer.
Section 269T Penalty, according to section 271E, a penalty equal to the loan or deposit amount repaid is due in cases where the requirements of section 269T are not met. The Federal Board of Revenue (FBR) may disallow taxpayers’ transactions under sales tax laws if those are made through cash above Rs50,000.
According to Section 269ST, no person can receive an amount of Rs 2 lakh or more in aggregate from a person in a day in a single transaction; or, in multiple transactions relating to one event or occasion from a person.