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CASH SALARY PAID - Sections 269SS & 269T of Income TaX

Krishna seva das (TAX CONSULTANT) (1070 Points)

21 October 2019

1) CASH SALARY PAID MORE THAN 2 LAC WILL Sections 269SS & 269T of Income TaX APPLICABLE

2) PAYMENT FOR GOODS TO SINGLE PARTY FOR GOODS PURCHASED
10 INVOICE RAISED OF LESS 2 LAC EACH TOTAL PURCHASED AMOUNT OF ALL 10 INVOICE TO 19.50 LAC WILL Sections 269SS & 269T of Income TaX APPLICABLE

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3 Replies

Bharat Bohra (306 Points)
Replied 21 October 2019

First let's understand what is sec 269ST :-

With effective from 1st April, 2017, no person shall receive an amount of Rs 2 Lakh or more;
(A) in aggregate from a person in a day (or)
(B) in respect of a single transaction (or)
(C) in respect of transactions relating to one event or occasion from a person.

Kindly note that Penalty u/s 271DA will be imposed on a person who receives a sum of Rs 2 Lakh and above in cash. The extent of penalty will be a sum equal to the amount of such receipt. The said penalty shall however not be levied if the person proves that there were good and sufficient reasons for such contravention.

section 269ST is applicable only to the person who is receiving the amount and not applicable to the payer. if you are paying salary to employee than 269ST will be applicable to employee since he/she is receiving amount of 200,000 or more and penalty will be levied on employee for receiving 200,000 or more by way of other than a/c payee cheque...etc
and section 40A(3) disallow the expense if paid more than 10000 in a single day to any person.

hope above explaination clarifies your doubt...

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Krishna seva das (TAX CONSULTANT) (1070 Points)
Replied 21 October 2019

Thanks .
Can you explain this in detail

(B) in respect of a single transaction (or)
(C) in respect of transactions relating to one event or occasion from a person.

If any party pays less than 10000 per day to supplier for single purchase on less than 2 lac
then sec 269st will attach ???

and 2nd question purchase sale happens on regular basis so all transaction will be consider as an event or every transaction will be one event

Kapadia Pravin (17259 Points)
Replied 21 October 2019

In respect of single transaction means eg. you purchase jewellry and pay bill amount of 220000/- in cash.

in respect of same transaction of jewellery bill of 220000/-, you pay 11 EMI of 20000/- each then it is considered as one event or occasion.

Now the last two questions are self explanatory.
Hope it's clarified.