Restrictions on Cash Transactions of Rs. 2 Lacs or More under Income Tax
Provisions of Section 269ST Section 269 T was inserted in the Income Tax Act, 1961 by the Finance Act, 2017. The government has aimed to curb generation of black money, to move towards less-cash economy and promote the digital economy. The government has attempted to target and penalize receiver instead of the payer. It is applicable whether the recipient person is a seller of goods or provider of service transferor of capital assets or any other person. Further, the section begins with words ‘no person’ which means this section is applicable to all whether individual, company, firm, trust or association of persons. This section is applicable to residents and non-residents. We shall divide the section into 5 parts to understand it in a better way: A. No person shall receive an amount of two lakh rupees or more in aggregate from a person in a day The first clause of the section has restricted any person, to not receive an amount of Rs. 2 Lakh or more from a person in a day otherwise t