CBDT Notifies the Receipts/ Entities which are Exempt from Provisions u/s 269ST of the Income Tax Act, 1961
In relation to the provisions under Section 269ST of the Income Tax Act, 1961 on prohibition of cash receipts above Rs. 2 lacs, the CBDT has notified exemptions/ cases where the same shall not be applicable, w.e.f. 1 Apr. 2017, as under:
S.O. 2065(E).- In exercise of the powers conferred by clause (iii) of the proviso to section 269ST of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies that the provision of section 269ST shall not apply to the following, namely:-
(a) 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;
(b) 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);
(c) 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);
(d) receipt by a company or institution issuing credit cards against bills raised in respect of one or more credit cards;
(e) receipt which is not includible in the total income under clause (17A) of section 10 of the Income-tax Act, 1961.
2. The notification shall be deemed to have come into force with effect from the 1st day of April, 2017.