Explanation
Section 269ST, introduced by the Finance Act 2017 as a demonetisation-era cash restriction measure, sets a universal limit of ₹2 lakh on cash receipts. The prohibition operates across three scenarios: (1) aggregate cash received from a single person in a single day; (2) a single cash receipt in a single transaction; (3) cash received for transactions relating to a single event or occasion. The penalty under §271DA is equal to 100% of the amount received in violation and is levied on the recipient (not the payer). Exceptions include: receipts by government, banking companies, post offices, and transactions for which mode of payment is separately prescribed. This provision applies to individuals and businesses equally — receiving cash rent, sale proceeds, gifts, or event payments above ₹2 lakh from one person triggers it. Notably, §269ST does not regulate ATM withdrawals. The section is broader than §269SS (which is limited to loans and deposits) — it covers all receipts. A property seller receiving ₹2 lakh+ in cash for booking is exposed to this penalty. Always insist on digital payment for high-value transactions. Verify on the income-tax portal before filing.