Section 269ST

Discouragement of Cash Transactions under Various Laws in India

Income Tax - In order to curb cash transactions and to move into the digital world, Government of India has introduced Demonetization of old notes of Rs. 500 & Rs. 1000 from 8th November 2016 in order to control the parallel world of black market. Further, Government has also initiated various steps through various laws in India including [&hellip...

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Income Tax Provisions relating to Cash Transactions in India

Income Tax - India has been categorized as a cash based economy since long. People are more comfortable in using cash as no prior authorization is required, no transaction charges are there, no technical knowledge is required, cash cab be used anonymously and also tax evasion become easier. In Past decade Govt. has taken various steps and has [&hellip...

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Restrictions on Cash Transactions of Rs. 2 Lacs or More under Income Tax

Income Tax - MODE OF UNDERTAKING TRANSACTIONS. 269ST. No person shall receive an amount of two lakh rupees or more—  (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, otherwise than by an account payee cheque […]...

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Brief Provision regarding Cash Transaction under Income Tax

Income Tax - After the demonetization of currency, the government was aiming to regularize the cash transaction and therefore they have come with various provisions to discourage such transactions. Following are various provision brought to Income tax law 1961 and other laws in simple language – 1. SECTION 40A(3) – Payment or aggregate of paym...

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Say No To Cash- Cashless under Income Tax Act, 1961

Income Tax - The step of demonetization that was taken in November, 2016 was a move by the government to curb the black money circulating in the economy. Post demonetization, a large push can be felt towards the cashless economy in order to promote the transparency. Various provisions have been introduced under Income Tax Act, 1961 to ensure […...

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Clean Transactions, Cleaner Economy, Go Cashless, Go Clean

Income Tax - DON’T √ Accept cash of Rs.  2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion. √ Receive or repay Rs.  20,000 or more in cash for transfer of Immovable Property. √ Pay more than Rs.  10,000 in cash relating to […]...

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Section 269ST Restriction on cash transactions– Certain concerns

Income Tax - In order to achieve the mission of the Government to move towards a less cash economy to reduce generation and circulation of black money, the Finance Act 2017 inserted section 269ST  in the Act to provide that no person shall receive an amount of two lakh rupees or more...

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ICAI President’s Message – May 2017 on GST, Tax Changes etc.

Income Tax - The Finance Bill, 2017 proposed an insertion of Section 271J in the Income-tax Act, 1961. Considering the undue hardships to be caused to our members, the ICAI had made various representations to the Ministry of Finance, Revenue Secretary and CBDT...

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Cash withdrawals from bank do not attract Section 269ST Penalty

Income Tax - It has also been decided that the restriction on cash transaction under section 269ST shall not apply to withdrawal of cash from a bank, co­operative bank or a post office savings bank....

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Section 269ST- Restriction on cash transactions -Certain concerns to be addressed

Income Tax - In order to achieve the mission of the Government to move towards a less cash economy to reduce generation and circulation of black money, the Finance Bill 2017 proposes to insert section 269ST in the Act to provide that no person shall receive an amount of three lakh rupees or more...

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Provisions of section 269ST is applicable to receiver & not to payer

Janatha Fish Meal & Oil Products Vs PCIT (ITAT Bangalore) - ITAT Bangalore held that assessee has paid money for the purpose of investment which is not disputed and therefore the provisions of Section 269ST of the Act is not applicable....

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No Section 271D Penalty for cash received from commission agent against sale of crops

Hardeep. Singh Vs JCIT (ITAT Chandigarh) - Transactions between the assessee and the Commission Agent were relating to the sale of agriculture crops, therefore, there was no receipt or repayment of loan or deposit, accordingly penalty levied by the A.O. and sustained by the Ld. CIT(A) under section 271 E of the Act is also deleted....

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CBDT issues corrigendum to notification related to Cash payment to hospital

Notification No. 59/2021-Income Tax [S.O. 1839(E)] - (10/05/2021) - CBDT issues Corrigendum to Notification No. 56/2021-Income Tax Dated: 7th May, 2021 and  stated that word ‘payee ‘to be read as payer. Notification No. 59/2021-Income Tax Dated: 10th May, 2021  MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) CORRIGENDUM New ...

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Section 269ST relaxation on cash payment to hospitals

Notification No. 56/2021-Income Tax S.O. 1803(E) - (07/05/2021) - Hospitals / medical facilities providing #COVID19 treatment to patients can now receive cash payments even higher than ₹ 2 lakh. Limit in section 269ST of IT Act relaxed, from 01.04.2021 to 31.05.2021. PAN - AADHAAR needed....

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CBDT notifies more modes of e-payments; 6DD limit reduced to ₹ 10000

Notification No. 08/2020-Income-Tax [G.S.R. 56(E)] - (29/01/2020) - Notification No. 8/2020-Income-Tax- CBDT has notified Other electronic modes by inserting New Income TAx Rule 6ABBA. It also amended marginal heading of rule 6DD and in rule 6DD for the words ‘account payee bank draft, exceeds twenty thousand rupees’, the words, figures and letters ̵...

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Clarification on Cash sale of agricultural produce by cultivators/agriculturist

Circular No. 27/2017-Income Tax - (03/11/2017) - Representations have been received from the stakeholders regarding applicability of income-tax provision to cash sale of agricultural produce by cultivators/agriculturists to traders....

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Clarifications in respect of section 269ST of Income-tax Act, 1961

Circular No. 22 of 2017-Income Tax - (03/07/2017) - Circular No. 22 of 2017 F.No.370142/10/2017-TPL Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) (TPL Division) *** Dated 03rd July, 2017 Clarifications in respect of section 269ST of the Income-tax Act, 1961 With a view to promote digital economy and cre...

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Recent Posts in "Section 269ST"

Provisions of section 269ST is applicable to receiver & not to payer

Janatha Fish Meal & Oil Products Vs PCIT (ITAT Bangalore)

ITAT Bangalore held that assessee has paid money for the purpose of investment which is not disputed and therefore the provisions of Section 269ST of the Act is not applicable....

Read More

Discouragement of Cash Transactions under Various Laws in India

In order to curb cash transactions and to move into the digital world, Government of India has introduced Demonetization of old notes of Rs. 500 & Rs. 1000 from 8th November 2016 in order to control the parallel world of black market. Further, Government has also initiated various steps through various laws in India including [&hellip...

Read More
Posted Under: Income Tax | ,

Income Tax Provisions relating to Cash Transactions in India

India has been categorized as a cash based economy since long. People are more comfortable in using cash as no prior authorization is required, no transaction charges are there, no technical knowledge is required, cash cab be used anonymously and also tax evasion become easier. In Past decade Govt. has taken various steps and has [&hellip...

Read More
Posted Under: Income Tax |

Restrictions on Cash Transactions of Rs. 2 Lacs or More under Income Tax

MODE OF UNDERTAKING TRANSACTIONS. 269ST. No person shall receive an amount of two lakh rupees or more—  (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, otherwise than by an account payee cheque […]...

Read More
Posted Under: Income Tax | ,

Brief Provision regarding Cash Transaction under Income Tax

After the demonetization of currency, the government was aiming to regularize the cash transaction and therefore they have come with various provisions to discourage such transactions. Following are various provision brought to Income tax law 1961 and other laws in simple language – 1. SECTION 40A(3) – Payment or aggregate of paym...

Read More
Posted Under: Income Tax |

Say No To Cash- Cashless under Income Tax Act, 1961

The step of demonetization that was taken in November, 2016 was a move by the government to curb the black money circulating in the economy. Post demonetization, a large push can be felt towards the cashless economy in order to promote the transparency. Various provisions have been introduced under Income Tax Act, 1961 to ensure […...

Read More
Posted Under: Income Tax |

Commentary on Section 269ST of Income Tax Act, 1961

Section 269ST was introduced through Finance Act 2017. The main purpose to bring this section was to curb the unaccounted money circulating in the country. To achieve the mission of the Government to move towards a less cash economy, to reduce the generation and circulation of black money, this section came into legislation. The Section [...

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Posted Under: Income Tax |

Relief to Covid Patients only for payment to Hospitals in cash

Arjuna (Fictional Character): Krishna, the CBDT has brought a notification on 7.5.2021 related to section 269ST of the Income Tax Act for providing relief to covid patients. Please explain section 269ST. Krishna, (Fictional Character): Arjuna, Section 269ST provides that no person shall receive an amount of Rs. 2.00 Lakhs or more otherwis...

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Posted Under: Income Tax |

CBDT issues corrigendum to notification related to Cash payment to hospital

Notification No. 59/2021-Income Tax [S.O. 1839(E)] 10/05/2021

CBDT issues Corrigendum to Notification No. 56/2021-Income Tax Dated: 7th May, 2021 and  stated that word ‘payee ‘to be read as payer. Notification No. 59/2021-Income Tax Dated: 10th May, 2021  MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) CORRIGENDUM New Delhi, the 10th May, 2021 NOTIFICATION N...

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FAQs on Section 269ST in light of recent CBDT notification dated 07.05.2021

Section 269ST relaxations announced in Covid 2.0 times especially for payment of medical bills of INR 2 lacs or more; vide Notification No. 56/2021-Income Tax Dated: 7th May, 2021 for a period of 2 months. Penalty on receipt of an amount of Rs. 2 lakh or more in cash Section 269ST (as inserted by the […]...

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Posted Under: Income Tax |

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