Income Tax

Cash Transaction Limit us 269ST reduced to Rs 2 lakhs -Revenue Secretary Tweet

Cash Transaction Limit us 269ST reduced to Rs 2 lakhs. As per Revenue Secretary tweet, Govt in official amendment to Finance Bill has proposed so.

Finance Bill 2017 had proposed a check on domestic black money by inserting a new section 269ST in the Income Tax Act, 1961 to provide that no person shall receive an amount of three lakh rupees or more,—

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

(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 banking channel/electronic clearing system. Simultaneously, a new section 271DA was proposed providing for the penalty equivalent to the amount received otherwise.

However, in recent tweet by the Revenue Secretary, Dr. Hasmukh Adhia, he has stated that in the official amendment to the Finance Bill, Government has proposed that the above limit of Rs. 3 lakhs for cash transactions be reduced to Rs. 2 lakhs.

The snapshot of Revenue Secretary’s official tweet is as under:

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