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Sale transaction

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CA Danish Abbas

Proprietor

114 Points Posted on 30 December 2021

Hello gyz
Is there any restriction on receiving cash in the course of business mean if we sale goods and in exchange we receive cash Amt to Rs 2lac then what is the implication of the same under income tax act?
Plz reply
Thanks in advance

Replies (2)

Quick Summary

This discussion clarifies the rules around receiving cash payments of £2 lakh or more in a business transaction under the Income Tax Act. While there's no direct implication for the seller, the buyer faces restrictions. Specifically, Section 269ST prohibits receiving cash exceeding £2 lakh in a single transaction, or in aggregate from one person in a day, or for related events, unless it's via an account payee cheque, draft, or electronic clearing system.

Anmol Thadhani

33 Points Posted on 30 December 2021

There is no implication on seller, it applies on buyer that buyer cannot expend more than 10000 on any expenses in a day for each party. 40 a (3) will attract on buyer and payment of more than 10000 will be disallowed.

TAX filers

28 Points Posted on 30 December 2021

Section 269ST
No person shall receive an amount of two lakh rupees 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,

otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account: