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Section 269ST

Jatin (Accountant) (3479 Points)

06 April 2018

provisions of sec 269ST apply on partners drawings?

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Rahul Prajapati (Student) (2282 Points)
Replied 06 April 2018

JATIN G,

Yes as Partnership Firm is included in Definition of Person under the Income Tax Act,

Any withdrawal of capital in Cash by a Partner of Rs 2 Lakhs or more or any Capital Introduced or Addition in Capital in Cash amounting to Rs 2 Lakhs or more will invite penalty u/s 271DA.

The scope of section 269ST is very wide and unless there is a notification by the Govt. no exemption is made available to any person or class of persons.

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Jatin (B.Com) (473 Points)
Replied 06 April 2018

OK Rahul Ji, rs 200000 limit yearly or daily ?

Rahul Prajapati (Student) (2282 Points)
Replied 06 April 2018

PROVISION OF SECTION 269ST

No person shall receive an amount of two lakh rupees 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, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.

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