Receipt of more than rs 2 lakh through cash deposit in bank

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2017 Sir,
My Customer inadvertently deposited in Bank, an amount of more than Rs 2 Lakhs in Cash, by way of Cash Deposit in our Account. He submitted his (Customer) KYC Details to Banker, at the time of his Cash Deposit into our Current Account. Will it amount to contravention of 269ST of The Finance Act 2017 ?? Please Advise

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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25 April 2017 No there is no contravention of section 269ST in this case.

Section 269ST applies on person who is receiving more than 2 lakhs in cash and 269ST don't apply on person who is making payment (or in other words from whom money is receiving)

In given case person receiving is banking institution which are expressly kept out of purview of section 269ST

So conclusion is that there is no violation of section 269ST

I hope this will resolve your query

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2017 Thank You Mr Shubhanshu for your prompt response. From your Opinion I understand that any Cash Deposits of above Rs 2 Lakhs, Deposited by any Customer in our Bank Account, towards any Sale Transaction, shall be Valid, and Not a Contravention of Section 269ST of Finance Act, 2017.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 October 2021 No. The understanding is not correct. Cash deposited by such mode will also attract sec. 269ST; and will be liable for penalty.

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