An appeal has been made to promote Cashless Transaction in the alert issued on the Income Tax Department website.
The Income Tax Department has issued some alerts regarding cash transactions that you should know. You should remember the five rules, given below while doing cash transactions. If you do not do this then you may have to face legal action in addition to financing.
Do not take 2 lakh or more
Alerts issued by the Income Tax Department said that you should not take cash of Rs.2 lakh or more from one person in one day. Even if you are taking this amount in more than one transaction. If you do this then you may have to pay a fine.
Do not have cash transactions of 20,000 or more for real estate
According to the alert, you should neither take nor pay 20,000 rupees or more for the transfer of immovable property. Even if you do, you may have to pay a fine.
Health Insurance premium will cost cash
If you paid in cash in the health insurance premium, you will not get tax exemption under Section 80D of Income Tax Act.
Do not pay more than 10,000 cash for business or profession expenses
You should not pay more than Rs. 10,000 for the business or professional expenses. This rule should be kept in mind for those who do business in their own business or have professionals like lawyers, CAs or doctors.
Do not donate more than 2,000
You must not have cash donate in excess of Rs 2,000 for a registered trust or political party.