The Central Government today notified the lists of transactions which are not hit by the provisions of section 269ST of the Income Tax Act.
Section 269ST, introduced by Finance Act, 2017 with effect from 01.04.2017 puts a limit on Cash Transactions upto 2 Lakhs with a view to curb Black Money and Tax evasion. The section provides penalty for any cash transaction above the value of Rs. 2 Lakh, equal to the Transaction amount.
The Notification said that the provision of section 269ST shall not apply to the following;
- Receipt by a business correspondent on behalf of a banking company or co-operative bank, in accordance with the guidelines issued by the Reserve Bank of India;
- Receipt by a white label automated teller machine operator from retail outlet sources on behalf of a banking company or co-operative bank, in accordance with the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 (51 of 2007);
- 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 (51 of 2007);
- Receipt by a company or institution issuing credit cards against bills raised in respect of one or more credit cards;
- Receipt which is not includible in the total income under clause (17A) of section 10 of the Income-tax Act, 1961.
The Notification is applicable from 1st April 2017.
Read the Full text of the Notification below.