CASH TRANSACTION : IMPORTANT THINGS KEPT IN MIND

Indian Government implement the mission to make India to cashless or less cash country and weed out corruption, the incom tax department has again warn to people to refrain from large cash transaction. Following point should be kept in mind that income tax department does not want to do.

Do not accept cash of Rs 2 lakh or More from a single person in a day

To avoid this, you are advised to use an account payee cheque of account payee Bank draft or use ECS (Electronic Clearing System).

Don’t receive or repay specified sum axceeding Rs 20,000 or more in cash for transfer of immovable property

You are advised to use an account payee cheque of account payee Bank draft or use ECS (Electronic Clearing System).

Do not pay more than Rs 10,000 in cash relating to expenditure of  business/profession.

Do not donate in excess of Rs 2,000 in cash to a registered trust or  political Party. If you make any payment to use an account payee cheque of account payee Bank draft or use ECS , you are eligible to claim deduction under section 80G.

Do not pay health insurance premiums in cash.
If you make any payment to use an account payee cheque of account payee Bank draft or use ECS , you are eligible to claim deduction under section 80D of the income tax Act.

It is advised to you for your own good not to violate the rules of Income tax department as the department is seeking information regarding such violations, Black money or benami transaction.

With Thanx form Financial express.

Categories: income tax, Pay bill online, Self help

Tags: avoid income tax rules, cash transaction, cash transaction important things kept in mind, cash transaction rules, income tax department, Rules for cash transaction