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The Tax PublishersIncome Tax--Cash Transaction
Dealership or Distributorship Contract Not an Event or Occasion for Applicability of Restriction Under Section 269ST--Recent Clarification
CA. Nisha Bhandari
The objective of Section 269ST is to promote digital economy. This section put a bar on cash receipt of Rs. 2 lakh or more 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. Recently the CBDT has clarified the meaning of one event or occasion in respect of dealership or distributorship contract in case of co-operative societies. The present write-up aims at discussing the restriction contained under Section 269ST in respect of cash transactions and certain clarifications by the CBDT in regard thereto.
1. Restriction under Section 269ST in respect of cash receipts
Section 269ST provides that 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
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