269T TAR

In a firm, Firm receives more than ₹200000 in Cash from its partner?

TAX AUDIT REPORT:
Is this allowable or will it be penalised under section 271D ?
Replies (2)
Quick Summary
This discussion addresses whether receiving over ₹2 Lakhs in cash from a partner is permissible under Indian tax law. It highlights potential violations of Section 269ST of the Income Tax Act, which prohibits cash receipts of ₹2 Lakhs or more in a single day or transaction. Consequently, a penalty under Section 271DA may be applicable, though a final conclusion requires a detailed examination of the transaction specifics.

Its violation of Sec. 269ST of IT act .... hence penalty u/s. 271DA would be applicable ...

It may be in violation of s.269ST.  However, it could be concluded after examining full details of transaction/ transactions for which amount was paid, actual amount paid and other details as s.269ST prohibits receipt of an amount of INR 2 lacs or more in aggregate from a person in a single day or in respect of a single transaction.

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