this will not apply to banks...i may have 20 lac cash sales where one item / bill may not be above 3lac... so banks will accept.
This is an restriction on recipt of money . Penalty on reciever.
ankitamehra1987
(consultant)
(27 Points)
Replied 10 February 2017
this will not apply to banks...i may have 20 lac cash sales where one item / bill may not be above 3lac... so banks will accept.
This is an restriction on recipt of money . Penalty on reciever.
NAGAMANI
(BUSINESS)
(43 Points)
Replied 10 February 2017
Cash withdrawl from Bank should not contravene 269ST. purpose of 269ST is to restrict cash transactions between two persons other than by way of a/c payee cheques. Whereas in the case of withdrawl from Bank, one party is bank, and withdrawl also takes place using cheques. Hence, cash withdrawl from Bank is not contravening 269ST. I request experts should share more views on this.
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 10 February 2017
Provisio of the section is as below:
Provided that the provisions of this section shall not apply to—
(i) any receipt by—
(a) Government;
(b) any banking company, post office savings bank or co-operative bank;
(ii) transactions of the nature referred to in section 269SS;
(iii) such other persons or class of persons or receipts, which the Central Government may, by
notification in the Official Gazette, specify
As per point no. ii above, receipt from bank is exempted from 269SS. Similarly, by refering to point no. iii we could expect the notification to be published will have the same provisio
Anand
(CA - Assistant General Manager - Taxation)
(1606 Points)
Replied 10 February 2017
40A(3) will apply to the payer, if he is claiming the expenditure in his books.
The penalty for receiving cash in excess of Rs. 3 Lakhs will not apply to a person who withdraws in excess of Rs. 3 Lakhs from his own money. You cannot be taxed for receiving your money. If they wanted to prevent withdrawal above 3 lakhs from a bank they could have used the RBI route to restrict withdrawals rather than a round-a-bout method. More so, they could have expressly taxed withdrawal from a bank.
In my opinion, there will not be a tax on withdrawal of money from a bank using self cheques
yogesh shah
(proprietor)
(22 Points)
Replied 10 February 2017
BANK IS ALSO COVER WIHTIN THE DEFINITION OF PERSON. SO IT MEAN ONE CANNOT WITHDRO MORE THAN RS 3 LALH
CA H R SHENOY
(PROPRIETOR)
(70 Points)
Replied 10 February 2017
269ST is just not applicable to withdrawal of cash from Bank at all. The section refers to "Receiver". Here you are not receiving it from anybody. You are just withdrawing your own money from your own account. And you can never be penalised for drawing your own money ! At best RBI may put restriction on withdrawal limit per day. Thats all.
CA H R SHENOY
(PROPRIETOR)
(70 Points)
Replied 10 February 2017
Thats not correct. You are drawing money from your own account. You are not receiving it from anybody.
Samir
(Account Head)
(207 Points)
Replied 10 February 2017
CA H R SHENOY
(PROPRIETOR)
(70 Points)
Replied 10 February 2017
Mr.Sameer, I will tell you 100% it is not applicable for withdrawal of cash from your own Bank Account. Basically this section is brought to reduce cash sales.
Sanjay Kumar
(assistant accountant)
(28 Points)
Replied 10 February 2017
Manu Gawri
(CA-Final )
(1187 Points)
Replied 10 February 2017
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 10 February 2017
SATISH KUMAR NEMANI
(PROPRIETOR)
(46 Points)
Replied 11 February 2017
In view of proposed section 269ST of the Income Tax Act, 1961, cash payment of Rs 3 lacs or more shall not be accepted by the vedndors like immovable property, motor car, jewellery, hotel, goods and services. There is no bar on withdrawal from bank in single day for an amount exceeding Rs 3 lacs.
Radhakrishnan K.V.
(Joint Registrar of Co-operative Societies (Rtd.))
(1072 Points)
Replied 12 February 2017
Transaction of the nature referred to in Section 269 SS are excluded from the scope of Section 269ST. Section 269 SS speaks of acceptance of loans and deposits. Therefore transactions in the nature of loans and deposits with Bank do not attract the provisions of Section 269ST.
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