banner_ad

Cash received Section 269ST

Tax queries 925 views 1 replies

X received received cash gift from relatives totalling ₹9,00,000 in a day  for X's mother's medical treatment . 

Six relatives have given cash gift @ ₹1,50,000/- each. 

Is it violation of Sec 269ST ?

Please advise.

Replies (1)

Receiving cash gifts totaling ₹9,00,000 in a day from six relatives, with each giving ₹1,50,000, does indeed violate Section 269ST of the Income Tax Act. This section prohibits receiving cash of ₹2 lakh or more in a single day from a single source, whether as a single transaction, aggregate transactions, or transactions related to one event or occasion.¹ ² In this scenario, each relative's contribution of ₹1,50,000 exceeds the ₹2 lakh limit when aggregated with the others, and since the purpose is for X's mother's medical treatment, it's considered a single occasion. Violating Section 269ST can lead to penalties equal to the amount received in cash, which in this case would be ₹9,00,000. However, it's worth noting that gifts received from relatives may be exempt from tax under certain conditions, but this exemption doesn't apply to the provisions of Section 269ST. To avoid such penalties, it's advisable to explore alternative modes of receiving these gifts, such as through bank transfers or cheques.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details