As per section 269st the daily cash limit is 2 lacs from a person in single or multiple transactions in a year,also you can't take more than 2 lacs in cash from more persons in a day. Does it mean anybody can take cash from different persons ex. 5 persons , total cash receipt not to exceed 10 lacs,with above criteria.
If it is cash receipts in connection with your business supply, then yes, But if anything like loan... then No.
Online you can receive cash .
There are some exception to this section.
As per Section 269ST, cash receipt of ₹2 lakh or more is restricted per person.
You cannot receive ₹2 lakh or more in cash:
From a single person in a day, or
For a single transaction, or
For one event/occasion from a person.
However, you can receive cash from multiple persons in a day, provided amount from each person is less than ₹2 lakh.
Section 269ST restricts receipt of ₹2 lakh or more in cash in three situations: (1) from a single person in a day, (2) for a single transaction, or (3) for transactions relating to one event or occasion from a person. If violated, penalty under Section 271DA can be equal to the amount received.
The limit applies to the receiver, not the payer. Payments through banking channels (account payee cheque, draft, electronic modes) are allowed. Certain exceptions exist, like government, banking companies, and notified persons.
If you’re unsure whether receipts fall under “single transaction” or “one event,” document invoices clearly and avoid splitting cash artificially. When in doubt, route payments digitally to stay compliant and reduce penalty risk.
Read sec 269st
And allied provisions.
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