Cash transaction limit: If more than 10 lakh cash is deposited in a single or multiple account of a bank in a financial year, banks have to share its information.
Credit card bill deposited more than 1 lakh in cash.
In the last few years, digital transactions have increased significantly, especially in the Corona era. Constant efforts are also being made by the government to promote the digital economy. Apart from this, steps are also being taken to reduce the use of cash. In this case, it is important for you to know the rules related to cash. Cash can be used up to a limit for different purposes. If you use more than that, you can come on the radar of the tax department.
In particular, strict instructions have been given to financial institutions to share information about such transactions. If more than 10 lakh cash is deposited in a single or multiple account of a bank in a financial year (excluding current and time deposits), banks have to share its information. If someone uses more than one lakh cash to deposit a credit card bill, then the banks will also have to share that information. If more than 2 lakh cash is taken for any goods or service, then the information will also have to be shared. Because in these cases tax audit will be required. All such transactions will be reported under section 61A.
1) Donation or donation of more than 2000 rupees cannot be made in cash.
(2) There is no tax rebate on medical expenses in cash above Rs 5000.
(3) If you spend in cash for business above 10 thousand rupees, the amount will be added to the amount of your profit.
(4) Loans in cash above Rs 20 thousand can neither be taken nor given. Fines will have to be paid for breaking this rule.
(5) The amount above 50 thousand rupees cannot be taken by going to foreign exchange.
(6) No purchase can be made in cash above Rs 2 lakh.
(7) TDS will be levied on withdrawing 2 crore more cash from the bank.