Income Tax Rule: Take more than ₹ 2 lakh cash? You will be fined 100%, you can’t escape! – 100 Percent Tax on More Than 2 Lakh Rupees Cash Transaction Check This Rules Tutd

Even today, cash is accepted in many places in India. Especially in real estate, business deal and social work, more cash is used. But in cash transactions, you may have to lose everything when some limits are crossed.

Financial Advisor and Tax Expert has warned through social media that large cash transactions can cause rigorous punishment under the Indian tax law. A recent viral post shows how easy it is to break the rules and its consequences can be cruel.

Penalty may take 100 percent
In a post on X (East Twitter), CA Nitin Kaushik wrote, ‘You can lose everything by taking more than ₹ 2 lakh cash! Do you think you can escape the payment with different mode? So one should think again! Under Section 269ST of the Income Tax Act, you can impose a fine of 100 %, why do not want to be accepted by ₹ 2 lakh or more than ₹ 2 lakh or more than that. This means that you can lose everything you have received ‘

CA told how the rule works?

• One day limit: Getting more than ₹ 2 lakh cash in a day will be considered a violation of the rule. Example: Got ₹ 1.5 lakh in the morning and ₹ 1 lakh in the evening? If the total is ₹ 2.5 lakh, then the fine will be charged only 2.5 lakh rupees.
• Divide the payment according to the days? This does not provide any help. Example: Selling a plot for ₹ 3 lakh and taking ₹ 1 lakh daily for three days, it will also be considered illegal.
• The expenses of marriage and program are counted as a transaction. Example: ₹ 1.5 lakh + ₹ 2.5 lakh will be fined for ₹ 1.5 lakh + decoration for food.

He cited a actual matter, saying, ‘A seller received ₹ 5 lakh every month for a property deal for six months. Each payment was less than ₹ 2 lakh, but the total was ₹ 30 lakh. Final fine was ₹ 30 lakhs.

How will you not pay penalty?
Never should do more than 2 lakh rupees cash transactions. Whether you divide it in any way. Large cash transactions should be avoided in business, property or event. Only through bank transfer, UPI or digital payment, transaction should be done. Many people inadvertently break this rule and then they have to pay a heavy price.