This is second Edition of Book, ‘Know When to Say No to Cash Transactions’ and for the convenience of the reader contents of the chapters are enumerated below:-
1. Introduction: This chapter introduces the evolution of cash over time, why cash is preferred over any other method of doing the transactions, various flaws involved in Cash Flow Transactions and various Advantages of Cashless Transactions.
2. Restrictions on Expenditure(capital & revenue):- This chapter covers Disallowance u/s 40A(3) & 40A(3A), ambit of exemptions allowed in Rule 6 DD, tax implications where liabilities are paid off by way of book adjustment and thorough discussion of peculiar cases affected by these sections. At the end this chapter also includes disclosures to be made in Tax Audit Report.
3. Incentive to cover Cashless Business Transactions:- This Chapter includes audit of accounts of certain persons carrying on business or profession popularly known as Section 44AB, amendment in tax audit provisions, discussion on new proviso on the subject matter of deemed cash for turnover purposes, issues while computing the limit of 5% cash transactions, lower rate of income in different scenarios, practical difficulty in implementation of scheme.
4. Restrictions on Loans, Deposits & Advances:- This Chapter includes Provisions of Section 269SS, various modes of taking ,accepting certain loans, deposits and specified sum, exemptions and penalties involved, Meaning of Specified Sum, some transactions otherwise than through account payee cheque/bank draft, penalties u/s 271D and 271E are independent of assessment proceedings, certificate from assessee (management representation), Provisions of section 269T mode of repayment of certain loans or deposits, Disclosures in Tax Audit Report.
5. Restrictions on cash transactions in Real Estate :- This Chapter includes Taxability in the hand of seller if the immovable property is considered as a capital asset vice a versa stock in trade, the legendary amendment by Finance Act 2021, reference to the valuation officer, Taxability Provisions in the hands of Buyer, Adoption of the Stamp Duty Value in various scenarios.
6. Disallowance of Income Tax Deductions:- This Chapter includes Provisions of section 80 D deduction in respect of health insurance premia, section 80GGA Donations for scientific research or rural development, section 80GGB Donations by Indian company to political parties / electoral trust, section 80GGC Donations by any person (other than Indian Company) to political parties / electoral trust, provisions of section 80JJAA Deduction in respect of employment of new employees.
7. Restrictions on cash transactions Rs. 2 Lacs or more:- This Chapter explains the provisions of Section 269 ST, Key Points, Exemptions, Penalties u/s 271DA, interplay of sec 40A(3) vs sec 269ST, Disclosures in Tax Audit Report.
8. Provisions of Section 269SU:- This Chapter includes Provisions of 269SU Acceptance of payment through prescribed electronic modes.
9. Tax Deducted At Source Provisions on Cash Transactions:- This Chapter includes Provisions of Section 194 N, Reponsibity of Deduction, exemptions Available, Rates & Applicability and points which needs clarification by CBDT
10. Cash Transactions in Agriculture Sector:- This Chapter includes applicability of sec 269ST in case of kachha arahtia and pucca arahtia, Provisions of sec 194N applicable on agriculture produce market committee (apmc), Applicability of sec 269T in case of agriculturist and Discussion of disallowances if any cash payment made excess of Rs. 10000 to producers of animal husbandry, livestock & meat.
11. Cash Restrictions on Charitable Trusts:- This chapter explains various Cash Restrictions on the Donor or Donee,Taxation of Anonymous Donations Vice a versa Non Anonymous Donations, Restriction on Payment of Expenditure, Discussion of issue of receipt of donation by placing collection boxes by religious & charitable trusts.
12. Reporting High value Cash Transactions :- This Chapter contains the Provisions of Section 285BA Obligation to furnish statement of financial transaction or reportable account.
13. Miscellaneous:- This Chapter consists of all the miscellaneous issues like Mandatory return filing, section 13A Exemption of Income in the hands of political Parties, PAN Card mandatory for Deposits, Withdrawals above INR 20 Lacs in a year.
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