Cash Transaction Limit in Income Tax, Bank – Section 269ST
A new Section 269ST has been added to the Income Tax Act as a result of the measures taken by the Finance Act 2017 to curb black money. A cash transaction limit was restricted by Section 269ST and was only allowed to be worth up to Rs. 2 Lakh per day. No one will receive any sum of ₹2,00,000 or more, according to Section 269ST.
In total from an individual in a day
In relation to a single purchase
In relation to cash transactions from a person regarding a single event or occasion.
However, it has been made clear by the Central Board of Direct Taxes (CBDT) that cash withdrawal limit from banks and post offices are exempt. Consequently, the following situations are exempt from the requirements of section 269ST:
Money received through the use of an electronic clearing system (ECS) out through bank account, an account payee bank draught, or a cheque made payable to an account payee.
any payment received from the federal government, a bank, a post office savings bank, or a cooperative bank.
transactions that fall under the definition of “nature” in section 269ST.
Such additional individuals, groups of individuals, or receipts as the Central Govt may specify by notification in the Official Gazette.
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