Equity investment in private limited company

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Can a Private Limited Company registered in India accept investment from Equity Investors in cash mode? Investment will be a large sum of money and investors are also based in India. 

If investment is received in cash, will the investor and investee have to explain the source from which cash is earned?

 

Replies (2)
As per section 269ST, no person shall receive an amount of Rs. 2 Lakh or more;
1) Single person in a day
2) Single transaction
3) One event or occasion
Any person who receives above Rs. 2 lacs in cash will be liable to penalty equivalent to the amount received.
Thanks Sunil Kumar for your response

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