Posted by : CS K. K. Agrawal Apr 6, 2017





Provisions of section 269ST:



2. The section provides as follows:



No person shall receive an amount of three 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.



The section includes within its sweep all cash receipts of whatever nature such as cash sales, cash gifts, donations made in cash, compensation, encashment of securities/instruments etc. A penalty equal to the amount of such receipt shall be imposed u/s 271D

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