Cash Receipt in general scenarios
Section 269ST of the 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.
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
Accepting of loans/deposits in cash
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.
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.
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