Cash Transaction Rules: In the era of promotion of digital payments and online banking, the Income Tax Department has become very strict regarding large cash transactions. Whether you are withdrawing cash for personal use or for business purposes, it is important to understand how much cash you can legally transact in a day. Many people may not know that if you make cash transactions beyond a certain limit, you will not only be fined but you may also get an income tax notice. So let us know how much cash transaction can be done in a day under the Income Tax Act.

Section 269 ST

According to Section 269 ST of the Income Tax Act, no person is allowed to receive Rs 2 lakh or more in cash in a day from one or more persons. This restriction does not depend at all on whether the transaction is personal or business. For example, if you are selling a car and receive Rs 2.5 lakh in cash, then legally it is against the income tax law.

Penalty for violating rules

If you accept more than Rs 2 lakh in cash, the Income Tax Department can impose a penalty equal to the total cash amount received. For example, if you accept ₹ 5 lakh in cash for your property or business transactions, then the penalty on that can also be the entire ₹ 5 lakh. This penalty is imposed under Section 271DA and only the person receiving the cash is held accountable.

Why is this rule

The ₹2 lakh cash transaction limit was imposed to curb black money and tax evasion in the economy. The government’s aim is that all major transactions, whether through bank transfer, check or digital means, should be transparent and traceable. Even if it is a personal transaction, like giving money to a friend or relative, if it is more than Rs 2 lakh then it can be investigated.

Income Tax Department Monitoring System

The Income Tax Department uses AI-powered data analysis to monitor unusual or high-value cash deposits and withdrawals. Along with this, an alert can be issued on cash deposit or withdrawal of more than Rs 10 lakh in a savings account or Rs 50 lakh in a current account in a financial year. Not only this, but many cash transactions of less than Rs 2 lakh can also be identified as suspicious to avoid detection.

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Pakistan’s Defense Minister Khwaja Asif has accused the top bureau of dollars of dollars and international money laundering, making a shocking disclosure. He said that this illegal money has been sent to Portugal, where top officials of Pakistan are buying property and getting citizenship or residency.

Estates purchased in Portugal, exit plan is being made
Asif wrote on the social media platform X that more than half of Pakistan’s bureaucracy has bought property in Portugal and is planning to take citizenship or residence there. All these properties have been purchased with black money. He described it as a “silent exit strategy”.

Flaws on leaders, but real advantage to bureaucracy
Khwaja Asif also said that the leaders have to face the public, so they do not add so much property. He said – “Politicians get the same one who avoids these (bureaucracy), yet every charge seems to be on the leaders.”

An officer gifts 4 billion gifts for daughter’s wedding
Asif alleged that a senior bureaucrat, close to former Chief Minister Usman Bujdar, took Rs 4 billion as ‘salute’ at his daughter’s wedding. He described it as a symbol of a grand lifestyle nurtured by corruption.

This bureaucracy is making Pakistan dirty
The Defense Minister described this entire system as ’embarrassing’ and said, ‘This bureaucracy is polluting the soil of our country.’ India’s top intelligence agencies told CNN-NEWS18 that this is a classic example of ‘Elite Asset LaNing’ made through diplomatic immunity.

Failed FATF system
Agencies said that due to the weak investigation system of FATF, this property transfer through Gulf and European countries was possible. Portugal was deliberately chosen as it is a ‘FATF blind spot’.

Trying to save real accused
According to India’s intelligence agencies, this statement may be a strategic move, diverting the attention of global monitoring institutions from military and intelligence agencies and diverts towards civil bureaucracy. This will protect senior officers of ISI and army from immediate sanctions.

Deep roots of corruption in Pakistan
Corruption in Pakistan is an old and widespread issue which is spread in every field like politics, bureaucracy, judiciary and law and order. This remains the biggest obstruction in the progress of the country. Politicians have been accused of foreign properties and scams, while bureaucrats are accused of taking bribe, obstructing government schemes and demanding money for everything.