Cash receipt

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514 Points Posted on 15 August 2020
i am not running any bussiness but sold my car and received cash 6,00,000 is there any issue..??
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On 15 August 2020 at 09:46 Report
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Quick Summary
Receiving a large sum of cash, such as £600,000 from selling a car, can lead to significant penalties under Section 269ST of the Income Tax Act. This section prohibits receiving £200,000 or more in a single day, for a single transaction, or related to one event. Even if the cash is received over several days, if it pertains to a single transaction (like selling one car), the penalty, which is 100% of the amount received, will still apply. However, selling multiple cars to different individuals as separate transactions would not be considered a single transaction.

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Practising CA
8954 Points Posted on 15 August 2020
Yes.

Cannot accept more than 2 lakhs cash as per sec 269ST. Penalty of equivalent amount under sec 271DA.
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On 15 August 2020 at 13:54
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Tax and Business Consultant
11616 Points Posted on 16 August 2020
Yes, if you have carried Rs 2 lakh or more transaction in one single day, then you are liable to pay penalties which is 100% of the entire amount of cash received. 

Penalties on cash transaction is specified under section 271DA of Income Tax Act. The section says, if a person receives any sum in contravention of the provisions of section 269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt.

These penalties are imposed by Joint Commissioner. 
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On 16 August 2020 at 00:37
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514 Points Posted on 20 September 2020
Thank u sir but one more doubt if i receive this cash in 4 diffrent days below 2lks per day any problem?
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On 20 September 2020 at 19:16
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Tax and Business Consultant
11616 Points Posted on 20 September 2020
As Per 269ST, 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,

As if you received this cash on 4 different day, but as it's "Single transaction" of sale of car, So, Penalty is applicable....
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On 20 September 2020 at 20:39
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514 Points Posted on 20 September 2020
I sold 3 different cars...so will it be a single transaction ? what is meant by single transaction?
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On 20 September 2020 at 21:01
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Tax and Business Consultant
11616 Points Posted on 20 September 2020
If you sold 3 Car to 3 different person sepratelly than it's 3 transaction...
If you sold 3 Car to single person in a "single deal", than its Single transaction..
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On 20 September 2020 at 21:17

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