Cash transaction rules in India: Today we are giving you information about all the rules related to the transaction of cash in cash.
The central government’s focus is to promote the digital economy of the country. The central government is constantly taking steps regarding this. That is why the rules related to cash transactions are becoming increasingly strict. That is why today we are giving you information about all the rules related to the transaction of cash in cash. Let me tell you that the limit of keeping cash in the house is not fixed. But it is important to tell the source of the cash kept at home.
Let’s know about them…
Tax experts say that in March 2020, cash in circulation (in practice) was around 24-25 lakh crore rupees. At the same time, in January 2021, it increased to close to Rs 27 lakh crore. This means that the income tax rules have been tightened. Also, many restrictions have also been imposed.
(1) Donation or donation of more than 2000 rupees cannot be made in cash.
(2) There is no tax exemption on medical expenses in cash above Rs 5000.
(3) If you spend in cash for business above 10 thousand rupees, the amount will be added to your profit amount.
(4) Loans in cash above 20 thousand rupees can neither be taken nor taken. Fines will have to be paid for breaking this rule.
(5) The amount above 50 thousand rupees cannot be taken by going to foreign exchange.
(6) No purchase can be made in cash above Rs 2 lakh.
(7) TDS will be levied on withdrawing 2 crore more cash from the bank.
Now the question arises here, after all, how much cash can be kept in the house.
Tax experts say that no limit has been fixed so far for keeping cash in the house. However, it is now necessary to tell the source of the cash kept at home.
If someone is not able to give this information, then he has to pay a penalty of 137%. Some rules have been set regarding saving account in Savings Bank.
If you have deposited Rs 2 lakh or more at one time or are depositing more than Rs 50,000 cash in a savings account, then it is necessary to give you PAN card number. If you are making a pay order or demand draft in cash, then PAN number will also have to be given in case of pay order-DD.
Matter of work
Tax experts say that income tax payers should avoid doing tax transactions. Because, at present, many options have come for the transaction. Because if any rules are broken between strictures, then heavy fines will have to be paid.
