Cash receipt in excess of ₹ 3 Lakh.

[CA AJAY KUMAR AGRAWAL]

As per proposal in Finance Bill 2017, a new section 269ST has been inserted prohibiting receipt of cash in excess of ₹ 3 Lakh. Banks / FIs / NBFCs have been exempted. (I feel these are exempted in both capacity i.e .as payer & payee as well) Whether cash withdrawal from bank (by ordinary person) in excess of ₹ 3 Lakh is also covered?

[DR.MARIAPPAN GOVINDARAJAN]

Clarification in this regard is expected from RBI

AI Summary

Cash receipt prohibition limits large cash receipts; bank exemptions and uncertainty on withdrawals pending regulatory clarification. A statutory amendment prohibits receipt of cash above a specified threshold while exempting banks, financial institutions and non-banking financial companies in their institutional capacities; whether cash withdrawals by individuals from banks constitute a covered 'receipt' exceeding the threshold is presently unresolved and awaits regulatory clarification.