With an aim to hold control over black money transaction and also to promote the digital transactions, the provisions of section 269ST of the Income Tax Act were introduced and made effective from 1st April 2017. The provisions of section 269ST mandate specific modes of undertaking transactions. In case the person fails to comply with the provisions of section 269ST, then such a person would be accountable to pay the penalty under section 271DA of the Income Tax Act.
The current article explains the applicability of provisions of section 271DA; provisions of section 269ST; authority eligible for imposing the penalty under section 271DA and the amount of penalty payable under section 271DA.
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As seen above, penalty under section 271DA is leviable only in case the person fails to comply with provisions of section 269ST. Thus, it becomes important to understand the provisions of section 269ST which is explained hereunder –
Section 269ST specifically provides that no person shall receive –
However, it should be noted that the person can receive an amount of INR 2 Lakhs or more by any of the following modes –
Please note, the provisions of section 269ST shall not apply to the following –
As per section 271DA (2), the penalty for contravening the provisions of section 269ST can be imposed only by the Joint Commissioner. Meaning thereby that only the Joint Commissioner is the eligible authority for imposing a penalty under section 271DA and no other authority can impose a penalty under section 271DA.
In case the person fails to comply with the provisions of section 269ST, then, the defaulter would be liable to pay an amount equal to the sum so received.
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