TaxTMI 
TaxTMI 
Whether capital contributions made by partners in cash exceeding the threshold under S.269, contributed as a single sum or in multiples., would this tax fall under S.269ST(c) as receipts arising from a single event as capital call or partnership agreement.?
Capital Contribution Sec 269ST?
23 Mar 2026 
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Cash capital contributions and section 269ST may trigger prohibition where payments arise from one capital arrangement.
Section 269ST restricts cash receipts of Rs. 2,00,000 or more, and partner capital contributions to a partnership firm may fall within clause (c) where they arise from one event or occasion. A capital contribution is a capital receipt in the firm's hands, and splitting the payment into instalments does not avoid the prohibition if the contribution is referable to a single capital call, partnership obligation, or agreed capital infusion. Independent and unrelated infusions may stand on a different footing, though clauses (a) and (b) may still apply on the facts. (AI Summary)
Section 269ST restricts cash receipts of Rs. 2,00,000 or more, and partner capital contributions to a partnership firm may fall within clause (c) where they arise from one event or occasion. A capital contribution is a capital receipt in the firm's hands, and splitting the payment into instalments does not avoid the prohibition if the contribution is referable to a single capital call, partnership obligation, or agreed capital infusion. Independent and unrelated infusions may stand on a different footing, though clauses (a) and (b) may still apply on the facts. (AI Summary)