Opinion Of Eminent Legal Luminaries On Controversial Issues

Mode of undertaking transactions-Cash aggregate of Rs. 2 lakh or more

QUERY: Whether cash aggregating to rupees two lakh or more can be received by a bank after insertion of Section 269ST under the Income-tax Act?
ANSWER: Yes. Section 269ST reads as under:
"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:
Provided that 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.
Explanation.– For the purposes of this section,–
(a) "Banking company" shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS;
(b) "Co-operative bank" shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS."
So, a person can deposit / make payment otherwise than by account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account to any Government, Banking Company, Post office Saving Bank or co-operative bank.
EXPERT:
SECTION(S):
GENRE:
CATCH WORDS:

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org