Tax warning: Income Tax Department warns people not to do these transactions
Following are the 5 transactions that the Income Tax Department doesn’t want you to do:
- Don’t accept cash of Rs 2, 00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion (269ST). Instead of cash, you are advised to use an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account for such transactions. However, the said restriction shall not apply to the government, any banking company, post office savings bank, co-operative bank or a person notified by the Central Government.
Section 271DA of the Income Tax Act provides for levy of penalty on a person who receives a sum in contravention of the provisions of section 269ST. The penalty shall be equal to the amount of such receipt.
However, the penalty shall not be levied if the person proves that there were good and sufficient reasons for such contravention. - Don’t receive or repay specified sum exceeding Rs 20,000 or more in cash for loan or deposit or transfer of immovable property (269SS). Use an account payee cheque or account payee demand draft or electricity clearing system through a bank account.
“Specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place.
Contravention of the provisions of section 269SS will attract penalty under section 271D. Penalty under section 271D shall be levied of an amount equal to loan or deposit taken or accepted. - Don’t pay more than Rs 10,000 in cash relating to expenditure of business/profession (40A).
If such expenses exceeding Rs 10,000 are made in any mode, other than by an account payee cheque drawn on a bank, or account payee bank draft, or use of electronic clearing system through a bank account, no deduction shall be allowed in respect of such expenditure in the profit and loss account. - Don’t donate in excess of Rs 2,000 in cash to a registered trust or political party. If you do this, then not only you won’t be able to claim deductions under section 80G of the Income Tax Act for such donations,
But appropriate actions would be initiated against the trust or political party for encouraging money laundering. - Don’t pay health insurance premiums in cash. If you make any payment in cash on account of premium on health insurance facilities, you won’t get deductions under Section 80D of the Income Tax Act.
So, it is advisable for your own good not to violate the above rules, as the Income Tax Department is seeking information regarding such violations, black money or benami transactions
Accounting, Taxation, GST, and Return Filing of GST, TDS, INCOME TAX.
Hey! This post couldn’t be written any better! Reading through this post reminds
me of my good old room mate! He always kept chatting about this.
I will forward this article to him. Fairly certain he will have a good read.
Many thanks for sharing!
We stumbled over here from a different web page and thought I might as well check things out.
I like what I see so now i am following you. Look forward to finding out about your
web page repeatedly.
This paragraph will help the internet visitors for building up
new web site or even a blog from start to end.
Thanks a lot for sharing this with all of us you actually recognise what you are talking about!
Bookmarked. Kindly additionally discuss with
my website =). We may have a hyperlink exchange contract between us
I am truly delighted to read this webpage posts which contains
tons of valuable facts, thanks for providing these data.
Have you ever considered about including a little bit more than just your articles?
I mean, what you say is valuable and everything.
But think of if you added some great pictures or videos to give your posts more, “pop”!
Your content is excellent but with pics and video clips, this blog
could definitely be one of the most beneficial in its field.
Terrific blog!
Excellent beat ! I wish to apprentice while you
amend your website, how can i subscribe for a blog site?
The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear concept
Hey there, I think your blog might be having browser compatibility issues.
When I look at your blog in Chrome, it looks fine but when opening in Internet Explorer,
it has some overlapping. I just wanted to give you a quick heads up!
Other then that, superb blog!
You are so interesting! I don’t suppose I’ve read a single thing
like that before. So good to find someone with unique thoughts on this subject.
Really.. many thanks for starting this up. This web site is
one thing that is required on the web, someone with a bit of
originality!