Strict Regulations on Cash Property Transactions in Rajasthan
Tough Action on Cash Property Deals in Rajasthan: Buyers, Sellers, and Officials All Liable
The Rajasthan government has issued a new circular to curb cash transactions in property buying and selling. Now, if anyone violates the rules — be it the buyer, seller, or an official — strict action will be taken against them.
This step aims to enhance transparency and curb black money in the real estate sector. Following the Supreme Court’s directives, the state has taken this measure to ensure all property transactions are conducted in a lawful and transparent manner.
Key Highlights of the Circular
- Mandatory Reporting for Cash Payments of ₹2 Lakh or More: Any property transaction involving ₹2 lakh or more in cash must be reported to the Income Tax Department. This rule applies not only to normal registrations but also to judicial orders and other government documents.
- Responsibility of Courts and Registration Offices: If any order or document mentions cash payments of ₹2 lakh or more, the concerned court or registry office must report it to the Income Tax Department, failing which disciplinary action will be taken against the officer.
- Penalty Equal to the Cash Amount: Under Section 269ST of the Income Tax Act, if anyone violates the rule, a penalty equal to the cash amount used will be imposed.
- Focus on Stamp Duty and Digital Payments: No document will be registered without paying valid stamp duty. The government encourages e-stamp, e-gras, demand drafts, and online payments to make every transaction transparent.
Who Will Be Affected by These Rules?
The new circular will increase transparency in the property market and curb illegal cash dealings.
- Buyers and Sellers: Conducting large cash transactions will now be risky. Any mistake or negligence may lead to heavy fines and legal action.
- Officials and Registry Staff: Every transaction must be correctly reported. Any error in reporting will make the responsible officials accountable.
- Real Estate Sector: This rule will bring more transparency, reduce fake deals, improve tax collection, and strengthen investor confidence — leading to a more regulated market.
- General Public: Property transactions will now be safer, more legal, and clearer. The chances of fraud and document forgery will reduce significantly.
Tips for Safe Transactions
- Use Digital Payments: Always prefer bank transfer, cheque, or online modes when buying or selling property to keep records safe.
- Cash Reporting is Mandatory: If for any reason you have to make a cash payment exceeding ₹2 lakh, report it to the concerned department.
- Verify Documents: Double-check all registry and legal documents to ensure they are complete and correct.
- Seek Expert Advice: Before making large transactions, always consult a legal or tax expert for guidance.
Advice from HighFlyRealestate.com
Real estate investment is a major responsibility. Always proceed in compliance with the new government rules — this will not only keep your money safe but also help you avoid any legal trouble in the future.
HighFlyRealestate.com advises its readers and clients to avoid cash dealings, use digital methods, and maintain proper transaction records. This will ensure safety and contribute to building an honest real estate culture in the state.
Conclusion
The Rajasthan government’s new circular is a major step towards increasing transparency and accountability in the property market. Buyers, sellers, and officials — all must adhere to these regulations. Following the law is the key to safe investments and a secure future.