Penalties Sections 269ST + 271DA — Penalty for Receiving ₹2 Lakh or More in Cash
Sections 269ST + 271DA — Penalty for Receiving ₹2 Lakh or More in Cash
Income Tax Act 1961 — 269ST / 271DA
Penalty equal to the amount received in cash where the amount is ₹2,00,000 or more from a single person in a day / for a single transaction / for one event or occasion.
The Penalty
Equal to the cash amount received
- Cap
- Equal to the offending amount
- Calculation base
- Aggregate cash received (a) in a day from a person; (b) for a single transaction; (c) for one event / occasion
- Period
- One-time per default; each defaulting receipt is a separate breach.
When does this apply?
Receiving ₹2,00,000 or more in cash from a single person on any of the three tests above — wedding, sale of asset, medical bill, etc.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
₹1,00,000Penalty equals the default amount
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Received ₹3,00,000 in cash for a single sale invoice | Penalty = ₹3,00,000 | ₹3,00,000 |
How it is levied
Joint Commissioner levies u/s 271DA; s.273B reasonable-cause defence available.
⚠ VERIFY
Confirm the exemption list (government / banking company / post office / specified receipts) covers the specific counterparty before concluding the transaction is caught.