CASH TRANSACTION IN INCOME TAX 40A(3) Vs 269SS/T Vs 269ST
PrintListen to this Article
Section 269ST: (For Detail Video Click on the above link, Video Includes Images with example)
Prohibits receipt of an amount of Rs. 2 lakh or more by a person,
In aggregate from a person in a day;
or
In respect of a single transaction;
or
In respect of transactions relating to one event or occasion from a person,
Otherwise than by an A/C cheque or an A/C bank draft or use of electronic clearing system through a bank account:
Provided that the provisions of this section shall not apply to—
any receipt by—
government / any banking company, post office savings bank or co-operative bank;
transactions of the nature referred to in section 269SS – i.e. acceptance of Loan, deposits etc ;
Section 40A(3)
Provides that any expenditure incurred in relation to business is made in a sum exceeding Rs.10,000/- in a single day with a person, otherwise than by account payee cheque or draft shall not be allowed as deduction. This section is applicable for both revenue expenses and Capital expenditures.
Section 269SS
A person shall not take or accept loan/deposit from other person otherwise than by A/c payee cheque or account payee bank draft or by use of electronic clearing system so that the aggregate from such person is Rs.20000/- or more.
In layman terms, cash loan or deposit from same person of Rs.20000/- or more is not allowable for the purpose of Section 269SS.
Section amended by adding the sums received for transfer of immovable property (advance/ otherwise) whether or not ultimately the contemplated transfer takes place. Therefore, the seller of the immovable property will be liable to pay penalty on the amount accepted or taken in cash and not the buyer.
On Contraventions penalty U/s 271D is attracted which is 100% of the amount received.
Category : Income Tax | Comments : 0 | Hits : 3130
Income Tax Alert - Here Are 5 High-Value Transactions That May Come Under Scrutiny. Large Cash Deposits: Any cash deposit exceeding Rs 10 lakh in a financial year across savings accounts draws the attention of the income tax department. Even if deposits are spread across multiple accounts, the cumulative amount beyond the threshold triggers scrutiny. Fixed Deposits: Surpassing the Rs 10-lakh limit in fixed deposits within a financial year prompts inquiries regarding the source of f...
Delhi Court Sentences Woman to 6 months Jail for not filing the return of income (ITR) discussed. Accordingly, the accused is held guilty of not filing the return of income for the assessment year 2014-15 under Section 276CC of The Act. Accordingly, the accused is convicted for an offence punishable under Section 276CC of the Act," the court said in the judgement. "The convict is awarded a sentence of simple imprisonment for six months with a fine of Rs 5,000 and in default to unde...
Corporates, Non-corporates or government department all are procuring major part of services or goods from the MSMEs. There are provision under the Micro, Small, and Medium Enterprises Development (MSMED) Act, to ensure that businesses make payments to MSMEs within a specified time frame, and failure to which can impact the deduction claims for such payments. To facilitate timely payments to micro, small, and medium enterprises (MSMEs) and address the challenges faced by these businesses in rec...
In the Income tax act, the words “Turnover”, “Gross receipts” and Sales are used at many places. In the common business parlance, the terms sales and turnover are used interchangeably. However, as per Income Tax law, guidelines are available on the question of what constitutes turnover. Understanding the concepts of these words is necessary for the purpose of the tax audit. An audit is mandatory for corporate assessees, irrespective of the amount of turnover. In ...
Very Important Income Tax Update regarding Micro and Small Enterprises Section 43B-any amount remains unpaid on year end to creditors, being micro/small entity, beyond 45 days or less, as agreed or 15 days if no agmt, shall be added to taxable Income resulting in huge additional tax liability. Keeping such creditors unpaid is risky. If payment for purchases made from *Micro and Small units* remains outstanding on 31st March, there may be huge tax liability. Therefore...
Comments