- This section is applicable from 1/4/2017
- Introduced with the intention of restricting the Cash Transactions to curb Black Money and Tax Theft in the country.
- Provision
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 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.
- The above provision is not applicable for following persons:
- Government
- Transaction of nature referred in Section 269SS
- Any banking company, post office saving bank or co-operative bank
- Such other person notified by the central government
- Penalty for contravention of section 269ST:
- The person shall liable to pay a sum equal to sum of receipt
- 100% of receipt
Examples:
In aggregate from a person in a day
Receipt from customers
| Person | Prasanth | Rohith | Sarath | Sagar |
| Bill1 | 250000 | 150000 | 300000 | 50000 |
| Bill2 | 0 | 40000 | 0 | 75000 |
| Cash receipt | 250000 | 190000 | 300000 | 125000 |
| Contravention | Yes | No | Yes | No |
Cash withdrawal from bank
| Bank | SBI | UBOI | HDFC | KVB |
| Cash withdrawal 1 | 175000 | 25000 | 123500 | 80000 |
| Cash withdrawal 2 | 75000 | 65000 | 0 | 95000 |
| Cash withdrawal 3 | 10000 | 0 | 60000 | 25000 |
| Cash receipt | 260000 | 90000 | 183500 | 200000 |
| Contravention | Yes | No | No | Yes |
Cash and non-cash receipt (sale of furniture)
| Person | Almaan | Sathiya priya | P Kumar | Gopi |
| Cash receipt | 190000 | 300000 | 195000 | 200000 |
| Non-cash receipt | 210000 | 100000 | 205000 | 200000 |
| Total receipt | 400000 | 400000 | 400000 | 400000 |
| Contravention | No | Yes | No | Yes |
In respect of a single transaction
| Person | Viswanathan | Silambarasan | Thilak | Pawan |
| Cash receipt | 200000 | 190000 | 85000 | 360000 |
| Cheque | 500000 | 32000 | 90000 | 45000 |
| UPI | 0 | 25000 | 30000 | 50000 |
| Total | 700000 | 247000 | 205000 | 455000 |
| Contravention | Yes | No | No | Yes |
In respect of transactions relating to one event or occasion from a person
On occasion of marriage
| Case | 1 | 2 | 3 | 4 |
| Cash from Shravan | 200000 | 50000 | 0 | 90000 |
| Cash from Nithish | 50000 | 250000 | 60000 | 195000 |
| Cash from Hasan | 199999 | 185000 | 189000 | 175000 |
| Total cash | 449999 | 485000 | 249000 | 460000 |
| Contravention | Yes | Yes | No | No |
Author
Babu Prasanth
