one i.t.person (son) cash gift received another person(father) Rs.150000/- x 3 times= total Rs.450000/- for the financial year 2019-2020.
violation for sec 269st in income tax act?
2 Answers
Hi,
Gift transactions between Father and son are income tax exempted.
However, Cash receipt of above Rs 2 lakh in a FY is subject to penalty to the receiver.
As per Section 269ST, any person who enters into a transaction of Rs 2 Lakh or above in cash, will be liable to a penalty of an amount equivalent to the amount of transaction.
For example : If you buy an expensive watch for cash worth Rs 5 Lakh, it is the shopkeeper who will have to pay the tax (penalty) of Rs 5 Lakh. So, here the tax rate is 100%.
Kindly note that Penalty u/s 271DA will be imposed on a person who receives a sum of Rs 2 Lakh and above in cash. The extent of penalty will be a sum equal to the amount of such receipt.
The said penalty shall however not be levied if the person proves that there were good and sufficient reasons for such contravention.
You may also consult a CA.
Related article :
Rs 2 Lakh Cash Transaction Limit w.e.f 01-Apr-2017 | Details & Examples
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