From this budget a new Section 269ST is proposed to prohibit the receipts of cash in excess of Rs 3,00,000 from a person in a single day or in respect of any single transaction. However, this restriction shall not apply to Government, any banking company, post office savings bank or co-operative bank or any other notified person. Contravention of these provisions would result in levy of penalty under Section 271DA which shall be equivalent to the amount received. Further, due to these amendments, TCS provisions in respect of sale of Jewellery has been withdrawn.
It may be noted that such provisions have been enforced with retrospective effect from AY 2017-18. It needs to be clarified that whether such prohibition may be made applicable for cash transactions already concluded in PY 2016-17?
