Cash transactions are the main source of tax evasion, black money and malpractices. That is the reason Government encourages digital and cashless economy. In order to limit cash transactions in businesses, Indian government has implemented various sections which can prevent such tax evasion, black money and malpractices. If the assessee crosses the prescribed cash transaction limit in India, heavy penalties will be imposed on the assessee that can be up to 100% of the amount paid/ or received.
🔔Watch the full video to know everything about the Cash transaction Limit and Penalty if any.
👉Cash Transactions under GST
👉Cash transactions under Income Tax Act
1. Business Payments Limit– Cash Payment exceeding 10,000 are disallowed (Section 40A(3))
2. Business Accepting Limit: Cash Receipt of Rs 2 lakh or more (Section 269ST)
3. Deposit Receiving Limit (Section 269 SS)
4. Amount Repaying Limit (Section 269 T)
