CA Sakchi Jain Instagram – Don’t pay in cash!
Certain transactions can lead to penalties and disallowed expenses under the Income Tax Act.
• As per Section 269SS, making a cash payment above ₹20,000 for an immovable property can result in a penalty equal to the entire amount.
• According to Section 80G, donations in cash exceeding ₹2,000 are not eligible for tax deductions.
• Under Section 40A(3), cash payments exceeding ₹10,000 for any expense in a single day may not be allowed as a deduction.
• As per Section 269ST, receiving cash above ₹2 lakhs from a single person in one day can attract a penalty equal to the amount received.
Stay cautious and stick to non-cash modes to avoid these costly mistakes!
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#penaltyoncashtransactions #section269ss #section40a3 #section269st #cashtransactionrules #incometaxindia #taxtips #casakchijain | Posted on 02/Jan/2025 19:48:19
