New section 269ST

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*#Budgetupdate*In order to achieve the mission of the Government to move towards a less cash economy to reduce generation and circulation of black money, it is proposed to insert section *269ST* in the Act to provide that no person shall receive an amount of three lakh rupees or more,—
(a) in aggregate from one person in a day; _(multiple invoices, single payments of 3 Lakhs or more)_

(b) in respect of a single transaction; or _(Single invoice above 3L, multiple payments received)_

(c) in respect of transactions relating to one event or occasion from a person, _(Multiple Invoices, Multiple services, Single Person)_
otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account.
It is also proposed to insert new section *271 DA* in the Act to provide for levy of penalty on a person who receives a sum in contravention of the provisions of the proposed section *269ST*. The penalty is proposed to be a sum equal to the amount of such receipt (100% Penalty). The said penalty shall however not be levied if the person proves that there were good and sufficient reasons for such contravention. It is also proposed that any such penalty shall be levied by the Joint Commissioner.
It is also proposed to consequentially amend the provisions of section *206C* to omit the provision relating to tax collection at source at the rate of one per cent. of sale consideration on cash sale of _jewellery_ exceeding five lakh rupees.
_These amendments will take effect from 1st April, 2017._

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