To put restriction on the cash transactions & promote digital economy, a new section 269ST has been inserted in the Income-tax Act, 1961 vide Finance Act, 2017. *

Section 269ST – In Brief:

The said section, prohibits receipt of an amount of ` 2 lakh or more by a person,

Circumstances

  1. In aggregate from a person in a day; or
  2. In respect of a single transaction; or
  3. In respect of transactions relating to one event or occasion from a person,

 Otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account:

 Provided that the provisions of this section shall not apply to—

  1. any receipt by—
  2. government / any banking company, post office savings bank or co-operative bank;
  3. transactions of the nature referred to in section 269SS – i.e. acceptance of Loan, deposits etc ;
  4. Such other persons or class of persons or receipts etc.,

 Section 271DA – Penal provisions for contravention

Liable to pay penalty of a sum equal to the amount of such receipt…

Latest Clarification

Whether the provisions of section 269ST of the Act shall apply to

One installment of loan repayment or the whole amount of such repayment (NBFCs or HFCs)..?

Clarification

The receipt of one installment of loan repayment in respect of a loan shall constitute a ‘SINGLE TRANSACTION’ as specified in clause (b) of section 269ST of the Act and all the installments paid for a loan shall not be aggregated for the purposes of determining applicability of the provisions section 269ST.

* W.e.f 01.04.2017

The Author is a budding Tax Law Professional & may be reached at shreetaxchambers@bsnl.in

Source; CBDT’s Circular No. 22 of 2017 dated 03.07.2017

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Tags : Section 269ST (21) Section 271DA (4)

9 responses to “Cash Transactions – Latest clarification by CBDT”

  1. SAR says:

    if a person deposited cash of 5 lakhs in another person savings account after 1st April 2017, will it attract a penalty?

  2. M.Jayaraman.. says:

    A person has 10 lacs balance in his savings account in SBI…and he withdraws Rs. 2 and a half lacs from his account for own use…will he invite penalty or not ?

  3. THOTA PAVAN KUMAR says:

    No

  4. thangapandy says:

    Dear Sir,
    We are trading edible oils. As per GST act we need some clarifications. (i.e)
    1. Cash transaction Limit to unregistered dealers ?
    2. Invoice Limit to unregistered dealer ?
    3. What is GST rate of Purchase old Empty Tins?
    and there is any notifications above said comments.
    Thanks

  5. PVS rao says:

    Whether 269st attracts penality for a sale to a dealer above 2.0 lacs aggregate for different invoices in a financial year

  6. VIKASH SHARMA says:

    Whether the provision of 269ST will attract penalty in the case of Cash Sale in Retail Shop in a single day sale over Rupees Two Lakh from different customer. Plz suggest

  7. amitchirawa@gmail.com says:

    sir we are manufactiring company and upto jun.2017 we take 50% input on capital goods balance 50% carry forward to next year . in GST can we take 100% input in month of jun.17 which i carry forward to next year . pls. suggest

  8. yv rao says:

    we are under work contracts. we have sites all over india.now we transfer our tippers(4no’s) from kerala to telangana.Each tipper value at rs 40 lakhs. What is the procedure under gst

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