Penalty for S. 40A(3).
Harshit Acharya (404 Points)
04 September 2020
What are the penalties in the receiver for accepting cash receipts more than 10,000 ?
1 Replies
Ajay
(CA Job)
(512 Points)
Replied 05 September 2020
Dear Harshit
|
Relevant Provision |
Corresponding Penalty |
|
Section 269SS – No person to accept a loan/deposit/other specified sum of an amount of Rs.20,000 or more in cash (being your case). This provision is applicable even if the amount of current amount along with the outstanding loan as on date of fresh acceptance, from such person exceeds the above limit. |
Section 271D – Penalty = Amount of loan/deposit/specified sum so accepted. |
|
Section 269ST – No person to receive cash (being your case) exceeding Rs.2 Lakhs irrespective of the nature of receipt. The above limit is qua a single payer or a single transaction or a single event/occasion from a person. Certain exception provided in the section. Also, this provision not applicable to cases specified in Sec.269SS, that is, in case of loan/deposit/specified sum, the maximum limit of cash acceptance is Rs.19,999 and not Rs.2 Lakhs. |
Section 271DA – Penalty = Amount so received. Penalty not applicable if the recipient has good and sufficient reason. |
Regards
Ajay
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