Violation of sec 269 St provision

Question BankCategory: Income TaxViolation of sec 269 St provision
Kollipara sundaraiah asked 1 month ago

A I.t. Assess cash mode gift received from mother amounts  mentioned below dates for f.y.2019-2020.
1.26-05-2019 cash mode gift rs.1,50,000/-
2.19-08-2019 cash mode gift rs.1,60,000/-
3.27-11-2019 cash mode gift rs.1,80,000/-
Assess violation of sec 269 St provision and penality applicable.
Total gifts shown in I.t. returns and how to pass accounting entries in books.

1 Answers
amit answered 4 weeks ago

As per section 269ST, no person shall received an amount of Rs. 200000/- or more in any mode otherwise than account payee cheque/draft or electronically clearing system (BHIM, UPI, Net banking) :-

  1. In aggregate from a person in a day.or
  2. in respect of a single transaction. or
  3. In respect of transactions relating to single event or occasion from a person.  

But this is not applicable on any receipts of :-

  1. Government
  2. Banking company
  3. Post office saving bank and
  4. Co-operative bank.

Hence if a person sold a car for 500000/- and received the consideration in cash i.e. Rs. 100000/- each day for 5 days. Then each day amount is less than the limit of Rs. 200000/- but still this is covered under 269ST and a penalty of 100% is applied on contravention of section 269ST. This penalty on contravention of section 269ST is on receiver not payer. 
In your case, each day receipts amount is less than the limit given under section 269st ie. rs. 200000/- But if this gift is given for a single occasion or three different occasion, This is to be checked from the gift deed. if as per gift deed total of gifts given for a single occasion like birthday, anniversary etc. are more than Rs. 200000/- even if actually given on different dates then 269st is applicable otherwise not. 
 

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