Mode of undertaking transactions - Section 269ST & Section 271DA

Cash receipt prohibition bars large cash receipts; noncompliance attracts penalty equal to the receipt amount and limited defenses.

Section 269ST prohibits receipt of cash at or above the statutory threshold except by account payee cheque, account payee bank draft, electronic clearing through a bank account, or other prescribed electronic modes, with specified exemptions including government entities, banking companies, co operative banks, transactions under section 269SS and categories notified by the Central Government. Section 271DA prescribes a penalty equal to the amount received for contraventions, subject to a defence of proving good and sufficient reasons; penalty imposition authority shifts from the Joint Commissioner to the Assessing Officer from 01.04.2025.