TaxTMI 
TaxTMI 
TaxTMI 
Penalty u/s 269ST is attracted for cash transaction above Rs.2,00,000/- My query is whether section 269ST is attracted if a partner draws cash of Rs.50,000/- per month towards his current account.
Section 269ST
Ethirajan Parthasarathy
Section 269ST Not Breached: Monthly Partner Withdrawals Under Rs. 2,00,000 Limit Avoid Penalty. A query was raised regarding the applicability of Section 269ST of the Income Tax Act, which prohibits cash transactions exceeding Rs. 2,00,000. The question concerned whether this section applies if a partner withdraws Rs. 50,000 monthly from their current account. The response clarified that Section 269ST would not be triggered in this scenario, as the withdrawals do not constitute a single transaction or relate to a single event exceeding the specified limit. Therefore, the penalty under Section 269ST would not apply to these monthly withdrawals. (AI Summary)