Cash receipt of ₹2 lakh or more attracts Income Tax penalty1 min read . Updated: 24 Nov 2020, 02:09 PM IST
Section 269ST of the Income Tax Act does not apply to any receipt of amount by the government, any banking company, post office savings bank or co-operative bank.
Income Tax Act restricts any person to receive an amount of two lakh rupees or more in cash, from a person in a day, in respect of a single transaction or in respect of transactions relating to one event or occasion from a person, under Section 269ST. However, such a transaction of an amount equal to ₹2 lakh or more is allowed through an account payee cheque or an account payee bank draft or use of electronic clearing system (ECS) through a bank account.
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