TDS UNDER SECTION 269 T

QUOTE CORRECT SECTIONS

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1). CASH PAYMENTS :

As per the Provision of Section 40A(3) of the Income Tax Act 1961, A person can pay a maximum of Rs. 10,000 per day to per person in "CASH". If the Cash payment exceeds Rs. 10,000 in a day, then you will not be allowed to claim deduction of that particular expenditure in your P&L A/c [ PROFITS AND GAINS FROM BUSINESS OR PROFESSION HEAD ].

2). CASH RECEIPTS :

As per the Provision of Section 269ST of the Income Tax Act 1961, No person shall receive an amount of "Two lakh rupees" or more :

(a). in aggregate from a person in a day; or

(b). in respect of a single transaction; or

(c). in respect of transactions relating to one event or occasion from a person,

otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.

Violation of the Provision of Section 269ST of the Income Tax Act 1961 attracts Penalty U/s 271DA sub section (1) of the Income Tax Act 1961, which shall be equal to the amount of such cash receipt. However no penalty shall be imposable if such person proves that there were good and sufficient reasons for the contravention.