Question ID : 40393

Section 269ST

Exceptions in respect to Section 269ST- Provision of Section 269ST shall not apply any of the following if receipt by- a. Government....... What is government under Income Tax ? Can municipality be called a government ? Can municipality receive tax of more than Rs. 2 Lakhs in cash ?

Hi Darshak, In my view, Municipality could be qualified as Government. It is a part of the state government which administers particular city or town. Accordingly, in my personal view, section 269ST would not be applicable to municipalities.