Restrictions on Cash transaction us 269ST

• 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

Post Author

Babu Prasanth