Damandeep Singh
Quick Summary
In the Indian economy, cash transactions have always played a major role and been a reason for black money. The Government in recent years has initiated various measures to curb cash transactions and boost digital payments. In this article, I have tried to give a brief overview of w.r.t. cash transa
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FAQ :
If a payment or aggregate of payments in a day to a person exceeds Rs. 10,000, otherwise than through specified electronic modes or crossed account payee cheque/draft, no deduction for that expenditure is allowed under the Income Tax Act.
Yes, exceptions include payments to banks, government, through letters of credit, for agricultural produce, in unbanked villages, certain employee terminal benefits up to Rs. 50,000, and payments to transporters up to Rs. 35,000.
A person shall not accept any loan or deposit or specified sum from another person if the aggregate amount from that person is Rs. 20,000 or more, otherwise than by account payee cheque, bank draft, or ECS.
No person should receive cash of Rs. 2,00,000 or more in aggregate from a person in a day, in respect of a single transaction, or in respect of transactions relating to one event or occasion.
If an amount is received in contravention of Section 269ST, a penalty equal to 100% of the total sum received in cash is levied on the receiver.
Currently, there is no prescribed limit for sale in cash under GST Law.
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