In many parts of India, cash is still king, particularly when it comes to social gatherings, commercial transactions, and real estate. However, going above certain cash transaction limitations might turn that crown upside down and lose you everything.
On social media, tax professionals and financial consultants have been raising red flags, cautioning that big cash transactions may result in severe fines under indian tax law. A recent widely shared post exposes how simple it is to disobey the law and the harsh penalties that might result.
In a post on X, the user with the ID CA Nitin kaushik wrote:
"Receiving Over ₹2 Lakh in Cash? You Could Lose It ALL! Think you can dodge tax rules by splitting payments? Think again! Under Section 269ST of the Income Tax Act, accepting ₹2 lakh or more in cash - even in parts - can attract a 100% penalty. That means you lose everything you received! "
Explaining how the law works, kaushik detailed several examples:
❌ One-day cap: Getting more than ₹2 lakh in cash in a single day? Infraction. ➡ For instance: Receive one lakh rupees in the evening and one lakh rupees in the morning? The entire penalty is equal to ₹2.5 lakh!
❌ Dividing money into days? Not helpful. ➡ An example would be to sell land for ₹3 lakh and receive ₹1 lakh per day for three days. still against the law.
"Wedding and event costs are considered a single transaction. For instance, ₹1.5 lakh for catering plus ₹1 lakh for decorations equals ₹2.5 lakh in penalties."
He underscored his point with a real-world case:
"Real-Life horror Story A seller received ₹5 lakh per month for six months for a property deal. Each payment was under ₹2 lakh, but the total was ₹30 lakh. Final penalty? ₹30 lakh - he lost it all!"
Kaushik wrapped up his post with clear advice:
"How to Stay Safe? ✅ Use bank transfers, UPI, or wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital payments. ✅ Never accept ₹2 lakh+ in cash-no matter how it's split. ✅ Avoid large cash transactions in business, property, or events. Many people unknowingly break this rule and pay the price. Don't be one of them!"
On social media, tax professionals and financial consultants have been raising red flags, cautioning that big cash transactions may result in severe fines under indian tax law. A recent widely shared post exposes how simple it is to disobey the law and the harsh penalties that might result.
In a post on X, the user with the ID CA Nitin kaushik wrote:
"Receiving Over ₹2 Lakh in Cash? You Could Lose It ALL! Think you can dodge tax rules by splitting payments? Think again! Under Section 269ST of the Income Tax Act, accepting ₹2 lakh or more in cash - even in parts - can attract a 100% penalty. That means you lose everything you received! "
Explaining how the law works, kaushik detailed several examples:
❌ One-day cap: Getting more than ₹2 lakh in cash in a single day? Infraction. ➡ For instance: Receive one lakh rupees in the evening and one lakh rupees in the morning? The entire penalty is equal to ₹2.5 lakh!
❌ Dividing money into days? Not helpful. ➡ An example would be to sell land for ₹3 lakh and receive ₹1 lakh per day for three days. still against the law.
"Wedding and event costs are considered a single transaction. For instance, ₹1.5 lakh for catering plus ₹1 lakh for decorations equals ₹2.5 lakh in penalties."
He underscored his point with a real-world case:
"Real-Life horror Story A seller received ₹5 lakh per month for six months for a property deal. Each payment was under ₹2 lakh, but the total was ₹30 lakh. Final penalty? ₹30 lakh - he lost it all!"
Kaushik wrapped up his post with clear advice:
"How to Stay Safe? ✅ Use bank transfers, UPI, or wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital payments. ✅ Never accept ₹2 lakh+ in cash-no matter how it's split. ✅ Avoid large cash transactions in business, property, or events. Many people unknowingly break this rule and pay the price. Don't be one of them!"
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