04 May 2018
Yes it is applicable.Partners Introduced cash is a single event see the provisions. (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.
04 May 2018
As per this section- 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: If you go through the literal interpretation of the same, Introducing capital by partner in his firm should be interpreted as below:- a) as per your example 4 transactions are there in a year, hence in a day it is not crossing the limit. b) since it is more than one transaction, it is not applicable. c) in respect of transactions relating to one event or occasion from a person, Since the transaction is happening in more than one event or occasion hence clause c is also inapplicable. Hence the introduction of capital being 4 lakh in a year in 4 installments can not attract section 269ST.