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CA Ashish Tater
Section 269ST is introduced by Finance Act, 2017 with effect from 01.04.2017 and put a limit on
Cash Transaction to put a check on Black Money and Tax Theft. Section is much talked about
section as it provides penalty for any cash transaction above the value of Rs. 2 Lakh, equal to the
Transaction amount. In this article author made an attempt to Analyse the section in Tabular manner
for easy understanding of Readers:-
APPLICABLE 01/04/2017
FROM
(b) any banking company, post office savings bank or co-operative bank;
(d) such other persons or class of persons or receipts, which the Central
Government may, by notification in the Official Gazette, specify.
PENALTY FOR If a person receives any sum in contravention of the provisions of section
NON 269ST, he shall be liable to pay, by way of penalty, a sum equal to the
COMPLIANCE amount of such receipt
SECTION 271DA
Any penalty imposable under sub-section (1) shall be imposed by the Joint
Commissioner.
ANALYSIS IN-DETAIL
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In aggregate from a person in a day Cash Receipts on a Single Day
CUSTOMER A B C D
Bill 3 85,000/-
Cash Receipt from Sale of Car [ Assuming Sale Value Rs. 4,00,000/- ]
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in respect of a single transaction Payments received in Cash and Other than Cash
CUSTOMER X Y Z W
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in respect of transactions relating to one IN CASE OF INDIVIDUAL (Occasion: Marriage or Any other Events)**
event or occasion from a person
SITUATION 1 2 3
** On plain reading of the provisions of the section, no person can receive cash of Rs. 2,00,000/- or more on one event or
occasion from a person. In other words, the restriction is on per person per event / occasion.
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