Under Section 269ST ITA 1961, CASH RECEIPTS of Rs 2 LAKH or MORE from a single person in respect of:
Answer & Solution
Correct answer: B.
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_
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