{"id":9047,"date":"2017-04-05T19:22:25","date_gmt":"2017-04-05T13:52:25","guid":{"rendered":"http:\/\/www.itatonline.org\/info\/?p=9047"},"modified":"2017-04-05T19:24:20","modified_gmt":"2017-04-05T13:54:20","slug":"cbdt-clarifies-imp-law-on-cash-transaction-limits-imposed-by-sections-269st-and-271da","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/cbdt-clarifies-imp-law-on-cash-transaction-limits-imposed-by-sections-269st-and-271da\/","title":{"rendered":"CBDT Clarifies Imp Law On Cash Transaction Limits Imposed By Sections 269ST And 271DA"},"content":{"rendered":"<p>The CBDT has issued a press release dated 5th April 2017 by which it has provided important clarification regarding the restriction imposed on cash transaction by sections 269ST &#038; 271DA inserted by the Finance Act 2017 to the Income-tax Act. These sections provide that no person (other than those specified therein) shall receive an amount of two lakh rupees or more (a) in aggregate from a person in a day; (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 account payee bank draft or use of electronic clearing system through a bank account. The CBDT has clarified that the said cash transaction limit of Rs 2 lakh will not apply to withdrawal from banks, cooperative bank and post offices.<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- responsive --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-6440093791992877\"\n     data-ad-slot=\"6406297397\"\n     data-ad-format=\"auto\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script> <\/p>\n<div class=\"journal2\"><a href=\"https:\/\/www.itatonline.org\/info\/cbdt-clarifies-imp-law-on-cash-transaction-limits-imposed-by-sections-269st-and-271da\/cbdt-press-release-269st-271-da-cash-transactions\/#dlcenter\" rel=\"attachment wp-att-9048\">Click here to download CBDT&#8217;s press release dated 5th April 2017<\/a>\n<\/div>\n<div class=\"journal2\">Click here to read <a href=\"https:\/\/www.itatonline.org\/articles_new\/surgical-strike-on-cash-transactions-analysis-of-sections-269st-271da-of-the-income-tax-act-1961\/\">Surgical Strike On Cash Transactions (Analysis Of Sections 269ST &#038; 271DA Of The Income-tax Act, 1961)<\/a> <\/div>\n<blockquote><p>Government of India<br \/>\nMinistry of Finance<br \/>\nDepartment of Revenue<br \/>\nCentral Board of Direct Taxes<br \/>\nNew Delhi, 5th April, 2017.<\/p>\n<p>PRESS RELEASE<\/p>\n<p>Budget 2017 takes Steps to discourage Cash transactions &#038; curb Black Money<\/p>\n<p>Various legislative steps have been taken by the Finance Act, 2017 to curb black money by discouraging cash transaction and by promoting digital economy.<\/p>\n<p>These prominently include placing restriction on cash transaction by introduction of new sections 269ST &#038; 271DA to the Income-tax Act. It has been provided that no person (other than those specified therein) shall receive an amount of two lakh rupees or more,<\/p>\n<p>(a) in aggregate from a person in a day;<br \/>\n(b) in respect of a single transaction; or<br \/>\n(c) in respect of transactions relating to one event or occasion from a person,<\/p>\n<p>otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account.<\/p>\n<p>Any contravention to the said provision shall attract penalty of a sum equal to the amount of such receipt. However, the said restriction is not applicable to any receipt by Government, banking company, post office savings bank or co-operative bank. It has also been decided that the restriction on cash transaction shall not apply to withdrawal of cash from a bank, co-operative bank or a post office savings bank. Necessary notification in this regard is being issued.<\/p>\n<p>It has also been provided that any capital expenditure in cash exceeding rupees ten thousand shall not be eligible for claiming depreciation allowance or investment-linked deduction. Similarly, the limit on revenue expenditure in cash has been reduced from Rs.20,000 to Rs.10,000.<\/p>\n<p>In order to promote digital payments in case of small unorganized businesses, the rate of presumptive taxation has been reduced from 8% to 6% for the amount of turnover realised through cheque\/digital mode.<\/p>\n<p>Restriction on receipt of cash donation up to Rs. 2000 has been provided on political parties for availing exemption from Income-tax. Further, it has also mandated that any donation in cash exceeding Rs.2000 to a charitable institution shall not be allowed as a deduction under the Income-tax Act.<\/p>\n<p>(Meenakshi J. Goswami)<br \/>\nCommissioner of Income Tax<br \/>\n(Media &#038; Technical Policy)<br \/>\nOfficial Spokesperson, CBDT.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The CBDT has issued a press release dated 5th April 2017 by which it has provided important clarification regarding the restriction imposed on cash transaction by sections 269ST &#038; 271DA inserted by the Finance Act 2017 to the Income-tax Act. These sections provide that no person (other than those specified therein) shall receive an amount of two lakh rupees or more (a) in aggregate from a person in a day; (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 account payee bank draft or use of electronic clearing system through a bank account. The CBDT has clarified that the said cash transaction limit of Rs 2 lakh will not apply to withdrawal from banks, cooperative bank and post offices<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/cbdt-clarifies-imp-law-on-cash-transaction-limits-imposed-by-sections-269st-and-271da\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-9047","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/9047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=9047"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/9047\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=9047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=9047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=9047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}