269ST of Income Tax Act, 1961
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1. No person shall receive an amount of 2 lakh rupees or more in Cash or through bearer cheque:
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person,
Example: a) in aggregate from a person in a day
Goods Sold to Mr A and cash received on same day
Bill 1 - 50,000
Bill 2 - 100,000
Bill 3 - 60,000
Total 210,000 - Section 269ST(a) Violated
(Penalty = amount received in Violation 271DA) - 210,000
Example b) in respect of a single transaction
Goods Sold to Mr A - Bill Value - 5 lakh on Sunday
Fund received as below:-
Monday - 1.5 lakh by Cash
Tuesday - 2.5 lakh by Cheque
Wednesday - 1 lakh by Cash
Total Cash - 2.5 lakhs Section 269ST(b) Violated
(Penalty = amount received in Violation 271DA) - 2.5 lakhs
Example c) in respect of transactions relating to one event or occasion from a person,
Biswajit is a Professional photographer and hired for Marriage of Mr A
Amount received from A in Cash
Photography - 1.5 lakhs
Videography - 2 lakhs
Total for one event and one person - 3.5 lakhs - Violated Section 269ST(c)
(Penalty = amount received in Violation 271DA) - 3.5 lakhs
2. The section is applicable for both Revenue and Capital transactions
3. Non Applicability: This section is not applicable in below cases:
a) any receipt by—
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Government;
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any banking company, post office savings bank or co-operative bank;
b) transactions of the nature referred to in section 269SS;
c) Payment made by banking Co, post office saving bank or Co-operative bank.
d) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.