Unraveling Cash Transaction Laws: Your Guide to Compliance
💰 Stay informed! Here are some key provisions for cash transactions you need to know:
- Section 40(A)(3) : Any payment made in cash exceeding ₹10,000 would not be eligible for deduction.
- Section 44AB : For getting accounts NON-Audited, cash receipts and cash payment should not exceed 5% of total receipt and total payment respectively.
- Section 44AD: if opted for section 44AD, then higher profit to be declared i.e. 8% of the turnover as profit.
- Section 80D : An individual can claim a deduction of up to ₹25,000 for the health insurance premium.
- Section 80G : Donations made in cash exceeding ₹2,000 are not eligible.
- Section 80GGB and Section 80GGC: Contributions made in cash exceeding ₹2,000 are not eligible for deduction.
- Section 194N : TDS on cash withdrawals exceeding specified limits from a bank account.
- Section 269SS/T : Transactions related to loans or deposits and specify a cash limit of ₹20,000.
- Section 269ST : Any person from receiving an amount of ₹2 lakhs or more.
Keep these in mind to navigate cash transactions smoothly! 💼💡📊🔍