1. Income Tax u/s  269ST :-

- In this section no person shall receive an amount of two lakh rupees or more in cash transaction.

Restrictions : -

a) No person shall receive total aggregate amount from one person in one day 

Example - Rohit gives three bills to Mohit which bills amounts are 1.5 Lacs, 1.5 Lacs, 1.5 Lacs respectively and Mohit pay cash 4.5 Lacs rupees to Rohit in one day, Then as per this section penalty will be applicable.

; or

b) No person shall receive respect of a single Transaction / Bill

Example - Rohit gives one bill to Mohit which amount is 3 Lacs and Mohit pay 1.5 Lacs rupees in cash on 03-May and 1.5 Lacs rupees in cash next day 04-May, Then as per this section penalty will be applicable.

; or

c) No person shall receive respect of transactions relating to one event or occasion from a person.

Example - Rohit's has marriage and he gives 4.5 Lakh rupees in cash to Event Manager. 1.5 Lacs rupees for Transportation on 04-Aug , 1.5 Lacs rupees for Catering on 07-Aug , 1.5 Lacs rupees for Decoration 10-Aug, Then as per this section penalty will be applicable.


Other Example :- 

- Rohit's receive cash from his different relatives and this cash is 2 Lacs or more Then as per this section penalty will be applicable.

- A hospital give bill to Mohit which amount is 4 Lacs and Mohit pay to hospital Day1 - 1 Lac , Day 2 - 2 Lacs , Day 3 - 1 Lac, Then as per this section penalty will be applicable.


Penalty :-

- 100% penalty will be charge on recipient (example - cash transaction / bearer cheque amount is 4 Lacs then 4 Lacs will be penalty). It's not matter your event or goods or service taxable or non-taxable for income tax, because this section is applicable on receiving of cash.  


Notes :-

The provisions of this section shall not apply to—

(i) any receipt by—

a) Government;

b) any banking company, post office savings bank or co-operative bank;

(ii) Transactions of the nature referred to in section 269SS;

(iii) Such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.