Limit & Penalty on Cash Transaction w.e.f 01.04.2017 -Income Tax ( India)

By | June 16, 2018
Print Friendly, PDF & Email
(Last Updated On: June 16, 2018)

Don’t use cash for these transactions w.e.f 01.04.2017

S. no.SectionCap on cash transactionPenalty for cash transaction
1.13A -Exemption to political partiesReceipt of cash donation above Rs 2,000No exemption
2.40A(3)- Disallowance for cash expenditurePayment of any expenditure above Rs. 10,000No deduction
Payments for plying, hiring or leasing of goods carriage above Rs 35,000
3.43(1)- Determination of actual cost of assetPayment above 10,000 for purchase of assetSuch payment won’t be included in actual cost of asset (viz, No depreciation)
4.35AD- Investment linked deduction for capital expenditurePayment above Rs 10,000 for any capital expenditureNo deduction
5.80D- Health Insurance premiumNo cash payment allowedNo deduction
6.80G – Donations to certain funds and charitable institutionsDonations above Rs. 2,000No deduction
4.80GGA- Donations for scientific research or rural development.Cash donation above Rs. 10,000No deduction
5.80GGB – Donations by companies to political parties.No cash payment allowedNo deduction
6.80GGC – Donations by any person to political partiesNo cash payment allowedNo deduction
7.269SS- Prohibition on acceptanceof cash loans, deposits, etc.Rs. 20,000 or more100% of amount received
8.269ST- Prohibition on receiving cashRs. 2,00,000 or more100% of amount received
9.269T – Prohibition on repayment of loans or deposits in cashRs. 20,000 or more100% of amount paid

This article was featured in Business Standard

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

2 thoughts on “Limit & Penalty on Cash Transaction w.e.f 01.04.2017 -Income Tax ( India)

  1. Pingback: 269ST- Cash Receipt Rs 2 Lakh or more Banned w.e.f 01.04.2017 - Tax Heal

  2. Pingback: Cash Limits in Income Tax : Free Study Material - Tax Heal

Leave a Reply

Your email address will not be published. Required fields are marked *