Latest Query & Reply

Query regarding CASH RECEIPT OF SALES AND APPLICABILITY OF SECTION 269ST AND PENALTY UNDER SECTION 271DA under Income Tax Act 1961.

SINGLE INVOICE -01

600000

600000

CASH REC IN SINGLE DAY

150000

250000

CHQ RECEVIED

450000

350000

TOTAL REC

600000

600000

NON CASH REC

450000

350000

CASH REC

150000

250000

Reply
Section 269ST attracts when a person 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,

Further as per section 271DA, 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.

As mentioned in the query that cash receipt in first case is less than Rs. two lakh, there will be no violation of section 269ST, whereas in second case the cash receipt is more than two lakh, so there is a violation of section 269ST and penalty u/s 271DA will also attract accordingly.