Implication of Cash transactions under Income Tax Act, 1961

Introduction Cash is considered as a monetary consideration to fulfil a transaction between payer and payee. In India post demonetization and evolution of UPI as a medium of transfer of money changed the transaction settlement drastically. Government encourages cashless transaction rather than cash transaction for transparency, levy of tax, avoidance of black money, corruption etc., Hence through Income tax Act, 1961 cash transaction has been limited, restricted in certain cases. In this article you will get insights about how much you are allowed to transact in cash. Restriction on Expenditur...