REGARDING APPLICABILITY OF SECTION 269ST FOR CASH PAYMENTS OF SALARY
This query is : Resolved
24 October 2025
IF THE SALARY IS PAID IN CASH TO ONE PERSON OF MORE THAN 2 LAKH IN SINGLE FINANCIAL YEAR THN WHETHER SECTION 269ST SHALL BE APPLICABLE AND PENALTY U/S 271DA SHALL BE ATTRACTED?
24 October 2025
In the case of a salary payment, if the total cash amount received by the employee exceeds Rs. 2 lakh, whether it is in one single day or in multiple installments for the same employment relationship, it constitutes a violation of Section 269ST. The rule applies irrespective of whether the payments relate to one or multiple months of salary; the aggregate cash received from one employer is considered for threshold determination.
So, if a salary is paid in cash exceeding Rs. 2 lakh to a single person in a financial year, the transaction falls within the purview of Section 269ST of the Income Tax Act, 1961, and penalty under Section 271DA can indeed be attracted.
So, if a salary is paid in cash exceeding Rs. 2 lakh to a single person in a financial year, the transaction falls within the purview of Section 269ST of the Income Tax Act, 1961, and penalty under Section 271DA can indeed be attracted.
24 October 2025
Applicable is you are paying over 2 lakh in one go. Not applicable if paid monthly less than 2 lakh at one time.
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