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Query regarding sec 269st

aksh (audit assistant) (31 Points)

04 April 2017

AS per rules regarding clause C of sec 269st. A person cannot receive cash gifts more than or equal to Rs200000 in case of any event or occassion from "a person". Thus if he gets Rs 100 from 2100 persons,then he will subject to penality or not.?

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11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (196128 Points)
Replied 04 April 2017

Yes, if same event and on same day

aksh (audit assistant) (31 Points)
Replied 04 April 2017

But he is receiveing gift from different person not single person so how he is liable..as it is clearly mention" in respect of transactions relating to one event or occasion from a person" ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (196128 Points)
Replied 04 April 2017

It simply states that if a person receives cash in different transactions but all the transaction relate to one event or occasion, then also the recipient cannot receive cash. That is to say if all the transaction relating to one event adds up to Rs. 2 lacs or more, then the person receiving the same cannot receive. Example Marriage or birthday cash gifts from different persons.

At the same time cash sales on single day from different persons will not be a single event.

aksh (audit assistant) (31 Points)
Replied 04 April 2017

Dear Sir,

For e.g.If a Makupman is receiving payments from both side i.e. For makup of Bride he ill get payment from her nd for makuop of groom he ill get payment from him and both payments collectively exceeds 200000 then he is not liable to penality because although the payments are related to single occassion but receives from two different peoples.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (196128 Points)
Replied 04 April 2017

Yes correct, its like traders dealing with different customers. There may be other people in the same ceremony who may also take service from the same make-up man!!

aksh (audit assistant) (31 Points)
Replied 04 April 2017

In the same way if the Grrom receive cash gifts from different people and it exceeds 200000 then He is also not liable to penality because for him also this income is because of occassion na bcause makeupman is also earning from an occassion i.e marriage.