Query regarding section 269ST,
1. What is meant by a 'transaction', is this a single bill or in a year put together?
2. Cash receipt on an occasion from a person violates section if more than 2 lacs. So what is the effect of sec. 269ST on gift received on occasion of marriage from a person, if more than 2 lacs?
3. Gifts received from relatives are exempt. But is sec. 56 superseded by 269ST? Does it mean that mother gifting Rs. 5 lacs to daughter in cash will now be liable for penalty?
1. A single/aggregate of bills per day.
2. Cash gifts should not be 2 lakhs or more on such event, otherwise penalty can be levied.
3. " Does it mean that mother gifting Rs. 5 lacs to daughter in cash will now be liable for penalty?"
Yes, Daughter can accept any amount by cheque or any other banking mode!!!
No section 56 is not supresed by section 269ST, both are independent section operating in thier own spheres. Only thing that can be said that section 56 is now subject to section 269ST so far as cash gifts are concerned. since relatives can give gift of any amount but if the amount of cash gift is Rs 2 Lakhs or more, the donee will invite penalty u/s 271DA.
Thank you!
CAclubindia
