Cash transaction limit as per Income Tax Act in India


Cash transaction limit as per Income Tax Act in India Under Income Tax Act there are various provisions which restrict cash transactions by following ways: Restriction Through Disallowance Section 35AD- Deduction in respect of expenditure incurred on setting up of a specified business No deduction is allowed for cash payments exceeding Rs.10,000/- for an expenditure or an allowance claimed under business head. In case of payment made for plying, hiring or leasing goods carriages, the limit stands enhanced to Rs. 35,000/- Deductions under chapter VI –A Section 80D Deduction for Medical Insurance & Health Check up No deduction u/s 80D is allowable if paid in cash other than preventive health check-up expenditure. Section 80G Deduction on Donation to Charitable Institutions
Deduction in respect of donation exceeding *Rs.2, 000/- is allowable where such sum is paid by any mode other than cash. Section 80GGA Deduction for Donation for R&D Deduction in respect of donation for scientific research or rural development exceeding Section 80GGB Contribution by Companies to Political Parties. Deduction in respect of contribution given by companies to political parties is allowable where such sum is paid by any mode other than cash. Section 80GGC Deduction for Donation to Political Parties. (Other than companies). Deduction in respect of contribution given by any person to political parties is allowable where such sum is paid by any mode other than cash. Section 68- Cash Credits Section 69- Unexplained Investments Section 115 BBC- Anonymous Donations Section 269SS – Mode of Taking or Accepting certain Loans and Deposits Section 269ST- Penalty on cash receipt of more than two lakhs Section 269T- Repayment of loan in cash Restriction through providing for incentivizing non-cash transactions

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