Mode of undertaking transactions - Section 269ST & Section 271DA - Income Tax - Ready Reckoner - Income Tax

Mode of undertaking transactions - Section 269ST No person shall receive an amount of ₹ 2,00,000 or more - in aggregate from a person in a day in respect of a single transaction 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 mode as may be prescribed. Exception - However, the provisions of this section shall not apply to- any receipt by Government or any banking company, post office savings bank or co-operative bank transactions of the nature referred to in section 269SS such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify. Note:- banking company shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS - banking company means a company to which the provisions of the Banking Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of that Act co-operative bank shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS - co-operative bank , primary agricultural credit society and primary co-operative agricultural and rural development bank shall have the meanings respectively assigned to them in Explanation to section 80P(4) . Penalty for failure to comply with provisions of section 269ST [ 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. No penalty shall be imposable if such person proves that there were good and sufficient reasons for the contravention. Any penalty shall be imposed by the Joint Commissioner. Important Notification Clarification 1. Clarification for the purposes of clause (c) of Section 269ST of the Income-tax Act, 1961 in respect of dealership/distributorship contract in case of Co-operative Societies. [ Circular No. 25/2022 Dated 30th December, 2022 ]