All about the Cash Receipts of Rs. 2 Lakh, Section 269ST and Section 271DA of the Income tax Act 1961

All about the Cash Receipts of Rs. 2 Lakh, with reference to the section 269ST of the Income-tax Act 1961, No person shall receive an amount of two lakh rupees or more —

(a) in aggregate from a person in a day;  (In a Day) or

(b) in respect of a single transaction; (Single Transaction) or

(c) in respect of transactions relating to one event or occasion from a person, (Nature of Business Transaction)

(d) otherwise, person shall receive an amount by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed.

However, Section 269ST, the provisions of this section shall not apply to

 (i)  any receipt by—

(a) Government;

(b) any banking company, post office savings bank or co-operative bank;

(ii)  transactions of the nature referred to in section 269SS;

(iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.

Penalty for Cash Transactions In Section 269ST of the Income-tax Act 1961 -

Penalty for failure to comply with provisions of section 269ST. Sub-Section (1) of Section 271DA of the IT Act that, If a person receives any sum in contravention of the provisions of section 269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt (Whereas, No penalty shall be imposable if such person proves that there were good and sufficient reasons for the contravention), Sub-Section (2) of the Section 271DA of the IT Act, Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.