Under Section 269ST ITA 1961, CASH RECEIPTS of Rs 2 LAKH or MORE from …

Question

Under Section 269ST ITA 1961, CASH RECEIPTS of Rs 2 LAKH or MORE from a single person in respect of:

Accepted Answer

B. SINGLE TRANSACTION or aggregate from a person in a day, OR for any single occasion / event — PROHIBITED; PENALTY equal to the amount under Section 271DA

1. Section 269ST Income Tax Act 1961 (inserted by Finance Act 2017): NO PERSON shall RECEIVE Rs 2 LAKH OR MORE:
2. (i) From a person in AGGREGATE in a day;
3. (ii) In respect of a SINGLE TRANSACTION; OR
4. (iii) In respect of transactions relating to one EVENT OR OCCASION from a person,
5. OTHERWISE THAN BY: account payee cheque, account payee bank draft, electronic clearing system, prescribed electronic mode.
6. EXCEPTIONS: receipts by Government, banking company, post office, cooperative bank; receipts from notified persons.
7. Section 271DA: PENALTY equal to the amount received in violation of Section 269ST.
8. Section 269SS (related): cash loan/deposit above Rs 20,000 prohibited.
9. Section 269T: cash repayment of loans above Rs 20,000 prohibited.
10. The provisions aim to curb cash transactions and parallel economy.
11. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 269ST_

Answer

allowed without restriction (cf. Income Tax Act 1961, Section 269ST) (cf. Income Tax Act 1961, Section 269ST) (cf. Income Tax Act 1961, Section 269ST)

Answer

only big businesses (cf. Income Tax Act 1961, Section 269ST) (cf. Income Tax Act 1961, Section 269ST) (cf. Income Tax Act 1961, Section 269ST)

Answer

no penalty (cf. Income Tax Act 1961, Section 269ST) (cf. Income Tax Act 1961, Section 269ST) (cf. Income Tax Act 1961, Section 269ST)