06 July 2024
Under Section 269SS of the Income Tax Act, 1961, any cash receipt exceeding Rs. 20,000 in aggregate from a person in a day, in respect of a single transaction or transactions relating to one event or occasion, is prohibited. If such receipts are made, they are subject to penalties unless specifically exempted under certain conditions.
Regarding chit amounts specifically, case law directly relating to Section 269SS and chit fund receipts is not readily available in my current resources. However, legal databases such as Manupatra, SCC Online, or the official website of the Income Tax Department may provide specific case law or judicial decisions that have interpreted this provision in relation to chit amounts. It's advisable to consult with a tax lawyer or a legal expert who can access these databases to provide you with the most relevant and updated information.
CAclubindia
