Understanding Section 269ST of the Income Tax Act: Cash Transaction Limits
Learn about Section 269ST of the Income Tax Act, which restricts cash transactions over ₹2 lakh and the penalties for non-compliance.
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Section 269ST of the Income Tax Act prohibits cash transactions exceeding ₹2 lakh to a single person in a day, for a single transaction, or for multiple transactions related to a single event. Non-compliance can result in a 100% penalty of the amount received.
FAQs & Answers
- What does Section 269ST of the Income Tax Act prohibit? Section 269ST prohibits cash transactions exceeding ₹2 lakh to a single person in a day, whether for a single transaction or multiple transactions related to a single event.
- What are the penalties for non-compliance with Section 269ST? Non-compliance with Section 269ST can result in a penalty of 100% of the amount received in violation of the law.
- Who does Section 269ST apply to? Section 269ST applies to all taxpayers in India, including individuals, businesses, and organizations involved in cash transactions.
- Are there any exceptions to Section 269ST's cash transaction limit? Yes, certain exceptions may apply for specific categories of transactions, but it is advisable to consult a tax professional for detailed guidance.