Explanation
Section 269ST of IT Act 1961 (IT Act 2025) applies to all recipients — individuals, firms, companies. The three triggers are distinct: (1) From a single person in a single day (aggregate of all cash transactions with that person that day ≥₹2L). (2) In a single transaction (any one payment ≥₹2L in cash). (3) In respect of a single event or occasion (e.g., a wedding where multiple people pay cash totalling ≥₹2L). Penalty under §271DA: equal to the cash amount received — levied on the RECIPIENT (not the payer). Exemptions: Government, banking companies, NBFCs notified by government, transactions in the normal course of banking business. Common situations affected: jewellers receiving cash, real estate transactions, doctors receiving large cash fees, event organizers. Verify on the income-tax portal before filing.