Cash received Section 269ST

1326 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
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details