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Cash transaction limit

aman (student) (28 Points)

21 March 2017

proposed cash transaction limit of 2,00,000 is for a year or for single transaction,please tell all about it?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 22 March 2017

Finance Minister Arun Jaitley had in his Budget for 2017-18 proposed to insert Section 269ST in the Income-Tax Act to state that "no person shall receive an amount of Rs 3 lakh or more by way of cash in aggregate from a person in a day; in respect of a single transaction; or in respect of transactions relating to one event or occasion from a person".

The restrictions will not apply to the central government, banking institutions, post office savings, or co-operative bank.

The 3 lakh ceiling on cash transactions from April 1, 2017, proposed in the Union Budget 2017-18, has been revised to 2 lakh, with the government introducing an amendment to this effect in the Finance Bill cleared by the Lok Sabha on Tuesday, 21st March, 2017..

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RAKESH BHATT (9 Points)
Replied 24 March 2017

Sir,

I am confused that ceiling of deposit in bank will be Rs 2 lacs at one time Rs 49000 in savings A/c not more than 990000 and Rs 4990000 in current a/c and this ceiling will be applicable in Term loan and cash credit a/c also. Sir, how schools will operate they receive fees in cash and deposit in their current a/c and if govt pressures that receive fees in cheque or by pos the banks are unable to provide pos how school will manage their funds. Secondly a distributor who is supplying goods through sales invoice to small traders through their sales man and sales man collect cash and party deposit in their current a/c the small traders ranging from 200 to 300 small retailers will we have to maintain single parties a/c please guide