Cash Transaction Restriction As Per Income Tax Act
The income tax regulations in India have many limitations on payment in cash and receiving of money regarding several transactions.
Here we are seeking attention at some of them. Some rules implement for those involved in a profession or business, and some implement for every person-person.
Cash Transactions Limits as Per Income Tax Act
Consequences of Restriction on Cash Transactions under Income Tax Act are as follows.
- Reduce cash transactions that occur disallowances of charges or reasoning under chapter VIA of the income tax act. That in a total of taxable income and providing subtraction to incentivize stabler assent.
- Scolding cash transactions above origin ends to build adequate deterrence.
- Cash deposit above one crore in current account
From 1st April 2020, if any person is depositing cash over one crore in his Current Accounts in a business year, he must also list income if his income is under taxable purpose.
This procurement includes assuring that a person who registers into High-Value Transactions does provide their return of income.
Download the Restriction on Cash Transactions under Income Tax Act file in PDF format to know more in detail.
