Limit for cash receipt
This query is : Resolved
02 July 2019
A person is doing interior designing business in individual capacity. He raises bill on client and receives all amount in cash and then deposit the cash in his bank account. Is there contravention of any section of income tax? Can there be a problem at the time of filing ITR? Please explain all point related to this query.
03 July 2019
He can't receive cash payment of 2 lacs and above for a work done from a person as per the provisions of section 269ST of income tax.
03 July 2019
Thanks for your answer sir.
If he has 10 clients and he receives cash payment from all of them which is less than 2 lacs per client then will the provision of sec 269st apply?
One more query sir. If there is any notice from IT department regarding these cash transaction then how one can prove the genuineness of these transaction?
If he has 10 clients and he receives cash payment from all of them which is less than 2 lacs per client then will the provision of sec 269st apply?
One more query sir. If there is any notice from IT department regarding these cash transaction then how one can prove the genuineness of these transaction?
03 July 2019
In such a case 269ST will not apply.
Prove it through books of accounts maintained.
Prove it through books of accounts maintained.
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03 July 2019
Thank you so much sir..
31 May 2020
With effective from 1st April, 2017, no person shall receive an amount of Rs 2 Lakh or more;
(A) in aggregate from a person in a day (or)
(B) in respect of a single transaction (or)
(C) in respect of transactions relating to one event or occasion from a person.
The new Cash transaction limit is not applicable, if a person receives the amount through an Account Payee Cheque (or) an Account Payee Bank Draft (or) through use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed.
(A) in aggregate from a person in a day (or)
(B) in respect of a single transaction (or)
(C) in respect of transactions relating to one event or occasion from a person.
The new Cash transaction limit is not applicable, if a person receives the amount through an Account Payee Cheque (or) an Account Payee Bank Draft (or) through use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed.
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