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

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....casion from a person. Permitted Modes of Receipt The section mandates that receipts above the threshold must be through: • Account payee cheque • Account payee bank draft • Electronic clearing system through a bank account • Such other electronic mode as may be prescribed under rule 6ABBA Exceptions and Exemptions However, the provisions of this section shall not apply to- • any receipt by Government or any banking company, post office savings bank or co-operative bank • transactions of the nature referred to in section 269SS • such other persons or class of persons or receipts, which the Central Government may, by notification....

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....¢ No penalty shall be imposable if such person proves that there were good and sufficient reasons for the contravention. • Authority to Impose Penalty • From 01.04.2025 - any penalty under section 271DA(1), on or after the 1st day of April, 2025, shall be imposed by the Assessing Officer. [ Inserted vide Section 85 of the Finance Act, 2025 ] • Upto 31.03.2025 - Originally, the power to impose the penalty under Section 271DA(1) was vested in the Joint Commissioner.  Important Notification & Clarification • For the Purposes of clause (iii) of Proviso to Section 269ST of the Income-tax Act, 1961, hereby specifies Hospitals, Disp....

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.... Act, 2007; • (c) receipt from an agent by an issuer of pre-paid payment instruments, in accordance with the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007; • (d) receipt by a company or institution issuing credit cards against bills raised in respect of one or more credit cards; • (e) receipt which is not includible in the total income under clause (17A) of section 10 of the Income-tax Act, 1961. [ Notification no. 57/2017 Dated 03.07.2017 ] • W.e.f. 01.04.2017, the Central Government hereby notifies that the provision of section 269ST shall not apply to receipt by any person from an entity referred to in ....