The Live Ahmedabad
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured

The Live Ahmedabad

  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
Nation

Income tax rules: How much cash can you receive in one day to avoid an I-T notice?

by TLAteam December 10, 2024December 10, 2024
written by TLAteam December 10, 2024December 10, 2024
Income tax rules: How much cash can you receive in one day to avoid an I-T notice?

The income tax department carefully monitors high-value cash transactions, so taxpayers should exercise caution when engaging in them.

Business News

Section 269ST of the Income Tax Act prohibits receiving cash payments of ₹2 lakh or more in a single day for a single transaction or related transactions on a single occasion. If this limit is crossed, there may be fines or legal action.

“Taxpayers should be aware that the Income Tax Department monitors high-value cash transactions exceeding certain limits, and can trigger notices from tax authorities,” said Abhishek Soni, CEO and Co-founder of Tax2win.

Soni added that Section 269ST of the Income Tax Act states that no person can receive an amount of ₹2 lakh or more in cash in aggregate from a person in a day in a single transaction or in respect of transactions relating to one event or occasion from a person.

This restriction applies to individuals and entities alike, with the responsibility to comply resting on the recipient of the cash rather than the payer,” explained Soni.

Cash transactions over ₹2 lakh may attract penalty

You can be subject to a fine if you make a cash transaction for more than ₹2 lakh or receive that much in a single day. According to Mumbai-based tax expert Balwant Jain, if you make a cash transaction of ₹5 lakh, you might have to pay a penalty of the same amount if the Income Tax Department finds the breach during an audit.

Those who accept cash beyond two lakhs, in contravention of this provision, can be subjected to a penalty equal to cash received. It is interesting to note that the payer does not have responsibility under these provisions,” said Balwant Jain

What Section 269ST says

According to Section 269ST, no one may receive more than ₹2 lakh (the cash receipt limit) from a person in any of the following situations: in total from a person in a single day, in connection with a single transaction, or connection with transactions from a person related to a single event or occasion.

However, there are certain exceptions to this rule (e.g. banking companies are exempt from this rule), and hence, the applicability would generally depend on the nature of the transaction. Hence, one needs to ensure that the transaction (or receipt of cash) is within the applicable limits depending on the nature of thetransaction proposed to be undertaken,” said Surajkumar Shetty, Partner, JSA Advocates and Solicitors

0 comment
previous post
Neha Sharma Heats Up in Sizzling Bikini
next post
CUET-UG, PG to undergo changes in ’25

You may also like

Sevagram Ashram Trust announces fellowship for studies in...

July 1, 2025

Cabinet Clears ₹1.07 Lakh Crore for Job Creation,...

July 1, 2025

Air India Delhi-Vienna Flight Drops 900 Feet After...

July 1, 2025

Big Changes From July 1: Aadhaar PAN Link,...

July 1, 2025

Big Changes in Railways: Charts 8 Hours Early,...

June 30, 2025

Himanshi Khurana Shares Throwback Photo, Calls Bigg Boss...

June 28, 2025

‘Kaanta Laga’ Fame Shefali Jariwala Passes Away at...

June 28, 2025

Shikhar Dhawan Opens Up About Personal Life and...

June 27, 2025

CJI BR Gavai Asserts Constitution’s Supremacy Amid Ongoing...

June 27, 2025

Shikhar Dhawan Opens Up About 2006 Australia Tour,...

June 27, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Business News

Recent Posts

  • Sevagram Ashram Trust announces fellowship for studies in Gandhian Thoughts

    July 1, 2025
  • 4,000 Investors Cheated in ‘Pump-and-Dump’ Scam Run from Ahmedabad; SEBI Launches Probe

    July 1, 2025
  • Ahmedabad Streets in Trouble: Potholes, Waterlogging Hit 13 Areas

    July 1, 2025
  • Fake Doctor Without Medical Degree Arrested by SOG in Changodar

    July 1, 2025
  • Cabinet Clears ₹1.07 Lakh Crore for Job Creation, Major Boost to Employment and R&D by Modi Government

    July 1, 2025
December 2024
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
3031 
« Nov Jan »
The Live Ahmedabad
Footer Logo
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
  • Privacy Policy
  • Disclaimer
  • Cookie Policy
  • Terms of use
  • Advertise with Us
  • Work With Us
  • Contact Us

© 2021 - The Live Ahmedabad. All Rights Reserved.