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269 ST doubt

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NICSON JOHN

362 Points Posted on 20 September 2020

what is meant by single transaction in Sec 269ST? if i sold 2 car to a person for 250000 each can it be considered as 2 transactions?

Replies (4)

Quick Summary

Section 269ST of the Income Tax Act limits cash payments to Rs. 2 lakh or more. This applies to aggregate payments in a day, single transactions, or multiple transactions related to one event. If you sell multiple items jointly under a single contract exceeding Rs. 2 lakh, it's considered one transaction and cannot be paid in cash. To avoid issues, ensure each sale is a separate transaction with its own bill, and daily cash receipts remain below Rs. 2 lakh.

Shreya Bafna

153 Points Posted on 20 September 2020

Section 269ST prohibits any person to receive an amount of Rs.2 lakh and above in cash:

(i) In aggregate from a person in a day, or
(ii) In a single transaction, or
(iii) In respect of transactions relating to one event or occasion from a person .

The transaction amount crosses 2 lakhs hence it would be attracted even if they are two different transactions.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 20 September 2020

As per 269ST, No person shall receive an amount of two lakh rupees or more in cash—
(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.

Single transaction means single Contract if you sale 2 Car (jointly) each of Rs. 1,50,000 to one person, means total 3,00,000- can't do this in Cash, as it's Single transaction exceed 2,00,000

NICSON JOHN

362 Points Posted on 20 September 2020

Thank u madam
but one more doubt
l sold 3 cars to a person in a day and received cash below 2 lakhs in 3 different days whether it is a single transaction?

Shreya Bafna

153 Points Posted on 20 September 2020

To avoid 269ST to be attracted, each sale will be one single separate transaction. So there will be three bills and amount received in a single day should not exceed Rs. 2,00,000/-.