whether cash deposit above 20000 accepted by cooperative socity from its members is allowable in terms of 269ss of it act
shailendra Singh (shailu) (34 Points)
09 September 2019whether cash deposit above 20000 accepted by cooperative socity from its members is allowable in terms of 269ss of it act
shailendra Singh (shailu)
(34 Points)
Replied 09 September 2019
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 09 September 2019
In Indian economy, cash transactions has always played a major role and been a reason for black money. The Government has now initiated various measures to curb cash transactions and boost digital payments. In this article, we look at cash transaction limit under the Income Tax Act along with penalty for transacting in cash over and above a certain threshold.
Section 269SS prohibits a taxpayer from taking/accepting loans or deposits or a sum of more than Rs.20,000 in cash. All loans and deposits of more than Rs.20,000 must always be taken through a banking channel.
Section 269SS of the Income Tax Act is however not applicable when accepting/taking loan or deposit from a person or entity mentioned below:
Finally, if the person from whom the loan or deposit is taken and the person by whom the loan or deposit is accepted, are both having agricultural income and neither have any income taxable under Income Tax Act, then the provisions of Section 269SS will not apply.
Penalty under Section 269SS
Failure to comply with provisions of section 269SS could lead to a penalty equal to the amount of loan or deposit or specified sum accepted.
Section 269ST of Income Tax Act
Section 269ST of Income Tax Act provides that no person can receive an amount of INR 2 Lakhs or more in cash:
sabyasachi mukherjee
(25983 Points)
Replied 09 September 2019
Kapadia Pravin
(17249 Points)
Replied 09 September 2019
sabyasachi mukherjee
(25983 Points)
Replied 10 September 2019
MANASI A.
(Student CA IPC / IPCC)
(22 Points)
Replied 24 June 2020
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