Section 269ST of Income Tax Act for AY 2023-24

Section 269ST of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Mode of undertaking transactions.

Amended and updated notes on section 269ST of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Mode of undertaking transactions.

Chapter XXB (Sections 269SS to 269TT) of the Income Tax Act 1961 deals with the provisions related to Requirement as to mode of acceptance payment or repayment in certain cases to counteract evasion of tax. Section 269ST of IT Act 1961 provides for Mode of undertaking transactions.

Recently, we have discussed in detail section 269SS (Mode of taking or accepting certain loans, deposits and specified sum) of IT Act 1961. Today, we learn the provisions of section 269ST of Income-tax Act 1961. The amended provision of section 269ST is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 269ST of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-269ST: Mode of undertaking transactions

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 or through such other electronic mode as may be prescribed:

Provided that 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.

Explanation: For the purposes of this section,—

(a) “banking company” shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS;

(b) “co-operative bank” shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS.


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