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Section 269st finance bill 2017

BHUTESH KUMAR MALVIYA (Sr. Account Officer(DSM Sugar-Rajpura)) (47 Points)

03 April 2017

PLEASE CLARIFY THE MEANING OF PERSON U/S 269ST OF FINANCE BILL 2017.

WHETHER COMPANIES OR BUSINESS ENTITIES MAKING CASH TRANSACTIONS LIKE WITHDRAWL FOR DAILY EXPENSES OR RECEIVING PAYMENT FROM CUSTOMERS ON RETAIL BASIS CAN WITHDRAWL/DEPOSIT MORE THAN RS. 200000/-?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 03 April 2017

As per section 2(31), the word person includes individuals, HUFs, companies, firms, AOPs, BOIs, local authorities and other artificial judicial persons. Thus, the restriction is on receipt of money by any individuals, HUFs, companies, firms, AOPs, BOIs, local authorities and other artificial judicial persons. from any other s individuals, HUFs, companies, firms, AOPs, BOIs, local authorities and other artificial judicial persons.

BHUTESH KUMAR MALVIYA (Sr. Account Officer(DSM Sugar-Rajpura)) (47 Points)
Replied 04 April 2017

Lots of thanks Sir.

Another thing is also to be clear....

As per section 269ST Government, Post Offices, Banking Company and financial Institutions are out of perview of this section.

Whether it mean ä person can receive more than Rs. 200000/- by aforesaid Institution by way of withdrawl, or as payment for any business transaction in a single entry?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 04 April 2017

" Whether it mean ä person can receive more than Rs. 200000/- by aforesaid Institution by way of withdrawl, or as payment for any business transaction in a single entry?"

For first part, clarification from CBDT awaited, as its contra and not payment transaction; but any other business receipts would attract the section 269ST.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 06 April 2017

As per the clarification from CBDT, any cash transaction with Bank, payment/withdrawal for any amount (even more than 2 lakhs) in self owned accounts, does not attract the new section 269ST. So no restriction on withdrawals from banks.