Regarding Applicability of Penalty u/s 269SS

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This discussion explores the applicability of penalties under Section 269ST of the Income Tax Act concerning cash payments. Specifically, it questions whether a penalty applies if a purchase of £400,000 from a single party involves a cash payment of less than £200,000 in the current financial year, with the remainder paid in cash in the next financial year. The core issue is whether this constitutes a single transaction triggering the penalty, especially considering the restriction on cash payments exceeding £10,000 for outstanding balances.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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09 September 2025 If purchase of Rs. 4,00,000 is done from single party and if payment of less than Rs. 2,00,000 is made in current financial year and remaning amount is payable in current financial year and paid in cash in next financial year.
Then whether penalty u/s 269ST shall be applicable considering it as single transaction?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 September 2025 The section 269ST is applicable over cash receiver.
But for seller if any amount is due from debtor as b/f balance, he cannot accept more than 10K in cash.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 September 2025 Good Luck...

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