Making a big cash payment? Know the tax rules
3 years, 5 months ago

Making a big cash payment? Know the tax rules

Live Mint  

My daughter is getting married in November 2021, I need to pay the booking amount to the hotel, and other parties. Can I pay this entire amount in Cash as I have some excess cash lying with me or is there any restriction on cash payment? 2,00,000 or more, from a person in a day or in respect of a single transaction or in relation to one event or occasion, in cash or an impermissible mode. Marriage is an event, therefore, if you make a payment in respect of such function to the hotel for an amount exceeding Rs. 2 lakhs the provisions of section 269ST shall be applied as all the payments are made in respect of a single event.

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History of this topic

Lower tax rate for manufacturing coops, higher cash pay limit: Amit Shah in RS
1 week, 4 days ago

Lower tax rate for manufacturing coops, higher cash pay limit: Amit Shah in RS

Hindustan Times  

Newly set up co-operatives that undertake manufacturing activities will get benefits of a lower tax rate of 15%, as is available to new manufacturing firms, Union minister for home and cooperation Amit Shah has said in a reply in Parliament. The Income Tax Act’s section 269 ST prohibits cash receipts of over ₹ 2 lakh from any person. In a …

Income tax rules: How much cash can you receive in one day to avoid an I-T notice?
1 week, 6 days ago

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

Live Mint  

The income tax department carefully monitors high-value cash transactions, so taxpayers should exercise caution when engaging in them. 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. “Taxpayers should be aware that the Income Tax Department monitors high-value …

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