Income Tax (INDIA)

Restrictions on Cash Transaction

posted 11 Jan 2019, 02:27 by CAnaresh dott com   [ updated 11 Jan 2019, 02:33 ]


1. Acceptance of cash more than  Rs.-2 lakhs in aggregate in a year, in a day or for one occasion or for one event or in one transaction.

        Non- compliance : Penalty 100% of the amount (Section 271DA).

2. Payment of any expenditure more than Rs.-10,000/- in a day (payment to transport operator for plying, hiring or leasing of goods carriage limit is Rs.-35,000/-).

        Non- compliance : expenditure not allowed as deduction from income from business & profession Section 40A(3).

3. Acceptance of loan or deposit of more than Rs.-20,000/- in cash.

        Non- compliance : Penalty 100% such of loan or deposit Section 269SS.

4. Repayment of loan or deposit in cash Section 269-T.

        Non- compliance : Penalty 100% such of loan or deposit Section 271E.

5. Acceptance of advance more than Rs.- 20,000/- in a year for transfer of immovable property Section 269SS.

Non- compliance : Penalty 100% of such amount

6. Payment of more than Rs.- 10,000/- for purchase of business assets in cash.

Non- compliance : Such amount will be reduced from the cost of asset and no deprecation will be allowed on such amount Section 43(1).

7. Investment linked deduction for capital expenditure more than Rs.- 10,000/- in cash.

Non- compliance : Deduction will not be allowed of such expenditure Section 35AD.

8. Payment of premium for medical insurance in cash.

Non- compliance : Deduction will not be allowed of such payments Section 80D.

9. Acceptance of donation more than Rs.- 2,000/- in cash by Political Parties Section 13A.

 

10. Payment of donation for more than Rs.- 2,000/- in cash to funds or trusts approved Section 80G.

Non- compliance : Deduction not allowed Section 80G.

11. Payment for donation more than Rs.- 2,000/- in cash for research and rural development.

Non- compliance : Deduction not allowed Section 80GGA.

12. Payment for donation more than Rs.- 2,000/- in cash to Political Parties.

Non- compliance : Deduction not allowed Sections 80GGB/ 80GGC. 


- Credit for Above article goes out to 'WIRC' and 'ICAI ' 

 

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