Cashreceipt

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This discussion clarifies whether a cash deposit made by a debtor directly into a trader's bank account is classified as a cash receipt or a bank receipt. The consensus reached is that such a transaction is considered a cash receipt. Consequently, it may attract the provisions of Section 269ST of the Income Tax Act, which restricts cash transactions above a certain threshold.

Sameer Kumar

Sameer Kumar (Querist)

16 May 2023 if a debtor deposit cash in trader's bank account ? is it a cash receipt or bank receipt ? and will it attract the provision of sec 269ST in case of higher amount recived?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 May 2023 It's cash receipt 269ST provisions attracted.

Manish

Manish (Expert)

16 May 2023 According to my understanding, the transaction would be considered as a bank receipt. And when the bank is receiver, section 269ST does not apply.
I would like to know your views on this matter, Seetharaman sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 May 2023 Your understanding is not right.
It's clarified that it's cash receipt.

Manish

Manish (Expert)

16 May 2023 Ok sir. Thanks for correcting me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 May 2023 You are welcome...
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