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Applicability of sec.269st for introduction of capital in partnership firm by partner

kiran kumar vankadari (proprietor) (61 Points)

14 July 2018

introduction of capital by a partner in partnership firm by way of cash more than 200000/-, whether provisions as per sec 269ST will be made applicable or not

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Sarath Rajendran (Nil) (2791 Points)
Replied 14 July 2018

After section 269SS of the Income-tax Act, the following section shall be inserted, namely:—

'269ST. Mode of undertaking transactions.—No person shall receive an amount of two lakh rupees or more—

(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,

otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account:

Provided that the provisions of this section shall not apply to—

(i)

any receipt by—

(a)		Government;
(b)		any banking company, post office savings bank or co-operative bank;

(ii)		transactions of the nature referred to in section 269SS;
(iii)		such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.

Explanation.—For the purposes of this section,—

(a)		"banking company" shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS;
(b)		"co-operative bank" shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269S

kiran kumar vankadari (proprietor) (61 Points)
Replied 14 July 2018

Dear sir

Thanks for your immediate response

Kindly clarify as to applicability of Sec.269ST on introduction of capital into partnership firm by partner

Dilip Kumar Jana (74 Points)
Replied 14 July 2018

Attention is drawn to clause (a) of section 269ST. You may find the answer or solution.

Saifullah Khalid (Autodidact/Curious ) (633 Points)
Replied 15 July 2018

Originally posted by : kiran kumar vankadari
	introduction of capital by a partner in partnership firm by way of cash more than 200000/-, whether provisions as per sec 269ST will be made applicable or not

First deposit that cash/capital amount to partner`s saving bank account or personal current account then trasfer further by banking mode to firm`s current account....thats the the best way as this will leave a trail of transaction between partner and firm`s bank accounts...