Cash Deals Over £2k Under IT Radar: Supreme Court Tightens Rules

Supreme Court’s Directions to Courts and Registries

When a case involves a claim that cash above ₹2 lakh was given, courts must immediately report to the jurisdictional Income Tax Department.

The IT Department will then verify the cash transaction and investigate violations under Section 269ST.

When a property document is presented for registration showing cash above Rs.2 lakh:

The Registrar must report it to the IT Department.

Failing to do so can lead to disciplinary action against the Registrar.

If any registry office fails to report such transactions, the matter will be escalated to the Chief Secretary of the State/UT for further disciplinary action.

This post appears to conflate a court’s directions in a particular matter with a general reporting rule. Section 269ST restricts a person from receiving ₹2 lakh or more in the specified modes and circumstances; it does not itself impose a universal duty on every court or property registrar to report every pleaded cash payment. A breach may attract a penalty under section 271DA, subject to the statutory exceptions and reasonable-cause defence.

Before sharing the claimed Supreme Court directions, verify the judgment and its exact operative wording: the case name, date and order are not supplied here. Also, do not treat a sale deed mentioning cash above ₹2 lakh as automatically proving a section 269ST contravention; the recipient, payment date, mode, transaction structure and any applicable exception matter. For a specific transaction, assess those facts and the actual order rather than relying on this summary.

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This post appears to conflate directions in a particular case with a general reporting rule. Section 269ST restricts a person from receiving ₹2 lakh or more in specified modes and circumstances; it does not, by itself, create a universal duty for every court or property registrar to report every cash payment mentioned in a claim or deed. A breach may attract a penalty under section 271DA, subject to statutory exceptions and the reasonable-cause defence.

The Supreme Court case and exact operative directions are not identified in the post, so verify the judgment before sharing that claim. A deed mentioning cash above ₹2 lakh does not alone establish a section 269ST breach: the recipient, payment mode, transaction structure and any applicable exception matter.