Cash deposit more than 20000

yes it is allowable.

it is a cooperative socity not a cooperative bank , kindly confirm accordingly and please specify the section 🙏

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:

• Government;
• Any banking company, post office saving bank or co-operative bank;
• Any corporation established by a Central, State or Provincial Act
• Any Government company as defined in clause (45) of section 2 of the Companies Act, 2013
• Institution, association or body or class of institutions, associations or bodies notified by Central Government in its official gazette.

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:

• 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 from a person.

 

debora this section was introduced long back.

@ shailendra Singh

Pl clarify which type of Co- operative society it is ?
And under which Act it's registered

The allowability under 269SS will depend on above

Sec 40A(3) of Income Tax Act 1961 provides for disallowance of expenses in respect of which a payment or aggregate of payments made to a person in a day otherwise than by account payee cheque drawn on bank or account payee thru electronic clearing system.
They are as follows:
1.expenses other tgan wages.
2. if a person makes more than one different purchases for cash from same person in excess of Rs.20000 w.e.f. fron AY 2018-19.

I am Individual person. in my bank saving account I have deposited 82000 in single day. 23000 is from withdraw from daughter account 40000 rent deposit I received in cash. 19000 rent I received in cash. there is it necessary to report in ITR?