Complete analysis of ban on cash transactions over Rs 2 Lakhs
by governments through section 269ST of Income Tax Act, 1961
2 लाख से अधिक के नकद लेन देन पर 100% जुर्माना | जानिए क्या कहती है आयकर अधिनियम की धारा 269ST और 271DA
This was inserted through Finance Act 2017 and Applicable from 1st April 2017.
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:
Provided that the provisions of this section shall not apply to-
(i) any receipt by-
(a) Government;
(b) any banking company, post office savings bank or co-operative bank;
(ii) transactions of the nature referred to in section 269SS;
(iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.
Section 271DA attractes a penalty 100% equals to the amount of Cash Transaction.
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Cash transaction limit- 100% Penalty on cash payment- Section 269st- Ban on cash transaction .(#Cashtransaction)
Complete analysis of ban on cash transactions over Rs 2 Lakhs
by governments through secetion 269st
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Further,
1. You can not accept cash exceeding Rs. 2 Lakh in aggregate in a year in a day for one occasion or, for one event or, in one transaction. If you do, you will have to pay 100% of the amount involved as penalty u/s 271DA . But this site already published an article who need not fear cash receipt ban u/s 269ST
2. Payment of any expenditure exceeding Rs. 10,000 in a Day is not allowed to be deducted from business or profession income u/s 40A(3)
3. The quantum of cash payment in respect of plying, hiring or leasing of goods carriage has been kept at higher amount at Rs 35,000.
4. Section 269SS puts a bar on receipt of loans or deposits in cash . You cannot receive any loan or deposit more than Rs. 20,000 in cash.
5. If you received any loan or deposit, you can cannot pay back the amount of loan or deposit by cash. This is as per section 269T.
6.Restriction on using case for capital expenditure by businessmen or professional that the cost of capital asset will not include payement in cash exceeding Rs 10,000 .That will reduce your claim of depreciation on assets.
7. Investment linked deduction for capital expenditure can not be done in cash in excess of Rs 10,000. If you do , deduction u/s 35AD will not be allowed.
8. Section 80D provides deduction for buying medical insurance. However, if you pay the premium in cash, deduction can not be claimed.
9. Political parties can not accept donation in excess of Rs 2,000 in cash as per section 13A of the Income Tax Act.
10. If anyone donates to funds or trust approved for section 80G , then donation in cash can not be more than Rs 2000. If you make more than Rs 2000 donaaion in cash, you can not claim deduction u/s 80G
11. Donation for research and rural development for deduction u/s 80GGA can not be in cash exceeding Rs 2000
12. Companies can not claim deduction u/s 80GGB for donation to political parties if they donate in cash
13. Individuals and others can not claim deduction u/s 80GGC for donation to political parties in cash.
14.Ban on Receipt of Advance for Transfer of Property- You can not accept advance or otherwise any money , in excess of Rs 20,000 in cash for transfer of an immovable property
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