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How much cash receipts are allowed under Income tax Act
How much cash receipts are allowed under Income tax Act

26 Mar, 2024

By Vidhu

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How much cash receipts are allowed under Income tax Act

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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