Finance Bill 2017 introduced a new Section 269ST in the income Tax Act. The new section will impose restriction on receipt of any amount exceeding Rs. 3 lakhs through modes other than the modes prescribed in that section.
Section 269ST will be attracted –
- 1. If you accept Rs.3 Lakh or more from same person in a day even against different bills.
- 2. If you accept Rs.3 Lakh or more from a person against one bill even on different days.
- 3. If you accept Rs.3 Lakh or more from a person for a series of transactions emanating from one event or occasion.
Examples of applicability of section 269ST for above said respective conditions
- If one sells goods worth Rs.4,50,000 through three different bills of Rs.1,50,000 each to one person and accept cash in single day at different times then section 269ST (a) will get violated.
- If one sells goods worth Rs.4,00,000 through Single bill to another person and receives cash of Rs.2,00,000 on day 1 and another 2,00,000 on day 2 then section 269ST (b) will get violated.
- If A accepts cash of Rs1,00,000 for catering Rs.1,50,000 for decoration and Rs.150000 for rent house work then section 269ST (c) will get violated even if cash is accepted on different dates.
This move of government is considerable in order to achieve the mission of government to curb black money and towards a less cash economy.
Protecting a business can be a task but the efforts will make the success of a business smoother. For any assistance go to www.centrik.in