Understanding the new Section 269ST of the Income Tax Act, 1961
INR 3 lakhs ceiling on cash transactions
In the Union Budget, 2017, Finance minister Mr. Arun Jaitley had emphasised the need to address black money formation and had proposed a ban on cash transactions over INR 3 lakhs.
To enforce this, a new section 269ST has been proposed in the Income-tax Act, 1961.
This new Section states that no person shall receive an amount of INR 3 lakhs or more from another person in a single day, for a single transaction, in any other form other than a cheque, bank draft or an electronic bank transfer.
The provisions of this new Section explained lucidly for the understanding of the common man. Check out the link below to know it: