{"id":3214,"date":"2017-05-31T15:53:26","date_gmt":"2017-05-31T10:23:26","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3214"},"modified":"2026-05-24T23:55:34","modified_gmt":"2026-05-24T18:25:34","slug":"changes-relating-to-cash-paymentsreceipts","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/","title":{"rendered":"Changes Relating to Cash Payments\/Receipts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a1d84db457a9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a1d84db457a9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Income_Tax_Rules_%E2%80%93_Cash_Transaction_Limits\" title=\"Income Tax Rules &#8211; Cash Transaction Limits \">Income Tax Rules &#8211; Cash Transaction Limits <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Cash_Expense_Limit_%E2%80%93_Sec_40A3\" title=\"Cash Expense Limit \u2013 Sec 40A(3)\">Cash Expense Limit \u2013 Sec 40A(3)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Cash_Loan_Deposit_Acceptance_%E2%80%93_Sec_269SS\" title=\"Cash Loan \/ Deposit Acceptance \u2013 Sec 269SS\">Cash Loan \/ Deposit Acceptance \u2013 Sec 269SS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Cash_Loan_Repayment_%E2%80%93_Sec_269T\" title=\"Cash Loan Repayment \u2013 Sec 269T\">Cash Loan Repayment \u2013 Sec 269T<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Cash_Receipt_Limit_%E2%80%93_Sec_269ST\" title=\"Cash Receipt Limit \u2013 Sec 269ST : \">Cash Receipt Limit \u2013 Sec 269ST : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#High-Value_Cash_Deposits_SFT_Reporting\" title=\"High-Value Cash Deposits (SFT Reporting)\">High-Value Cash Deposits (SFT Reporting)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Property_Transactions\" title=\"Property Transactions\">Property Transactions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#CHANGES_RELATING_TO_CASH_PAYMENTSRECEIPTS\" title=\"CHANGES RELATING TO CASH PAYMENTS\/RECEIPTS\">CHANGES RELATING TO CASH PAYMENTS\/RECEIPTS<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Cash_PaymentsReceipts_reporting_related_to_MCA_in_ITR_with_Effect_from_01042017\" title=\"Cash Payments\/Receipts &amp; reporting related to MCA &amp; in ITR with Effect from 01.04.2017 \u00a0\">Cash Payments\/Receipts &amp; reporting related to MCA &amp; in ITR with Effect from 01.04.2017 \u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Section_269ST_Section_271D_and_other_cash_restrictions\" title=\"Section 269ST &amp; Section 271D and other cash restrictions:\u00a0\">Section 269ST &amp; Section 271D and other cash restrictions:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#CASH_REPORTING_REQUIRED_IN_INCOME_TAX_RETURN_FORM_ITR-1_ITR-4S_INTRODUCED_FOR_AY_2017-18\" title=\"CASH REPORTING REQUIRED IN INCOME TAX RETURN FORM ITR-1 &amp; ITR-4S INTRODUCED FOR AY 2017-18\">CASH REPORTING REQUIRED IN INCOME TAX RETURN FORM ITR-1 &amp; ITR-4S INTRODUCED FOR AY 2017-18<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#CASH_REPORTING_AS_PER_MCA\" title=\"CASH REPORTING AS PER MCA\">CASH REPORTING AS PER MCA<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Read_more_about_What_is_core_Business_Activity_GST\" title=\"Read more about: What is core Business Activity GST\">Read more about: What is core Business Activity GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/changes-relating-to-cash-paymentsreceipts\/#Read_more_about_Important_decisions_made_at_the_43rd_GST_Council_meeting\" title=\"Read more about: Important decisions made at the \u00a043rd GST Council\u00a0 meeting\">Read more about: Important decisions made at the \u00a043rd GST Council\u00a0 meeting<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-31957\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash-tr-limit_edited.jpg\" alt=\"cash tr limit\" width=\"1070\" height=\"1050\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash-tr-limit_edited.jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash-tr-limit_edited-300x294.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash-tr-limit_edited-768x754.jpg 768w\" sizes=\"(max-width: 1070px) 100vw, 1070px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax_Rules_%E2%80%93_Cash_Transaction_Limits\"><\/span><span style=\"color: #000080;\"><strong>Income Tax Rules &#8211; Cash Transaction Limits <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Cash_Expense_Limit_%E2%80%93_Sec_40A3\"><\/span><span style=\"color: #000080;\"><strong>Cash Expense Limit \u2013 Sec 40A(3)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cash Expense Limit: Cash payment above INR 10,000\/day per person is NOT allowed as expense<\/li>\n<li>For transporters \u2192 limit is INR 35,000\/day<\/li>\n<li>Cash Expense Limit Impact: Expense will be disallowed \u2192 higher taxable income<\/li>\n<li>For example: You pay INR 25,000 cash to a vendor \u2192 entire INR 25,000 may be disallowed<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cash_Loan_Deposit_Acceptance_%E2%80%93_Sec_269SS\"><\/span><span style=\"color: #000080;\"><strong>Cash Loan \/ Deposit Acceptance \u2013 Sec 269SS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cash Loan \/ Deposit Acceptance cannot accept INR 20,000 or more in cash. Applies to Loans, deposits, and Property advances<\/li>\n<li>Cash Loan \/ Deposit Acceptance Includes both single transactions and aggregate<\/li>\n<li>Noncompliance of Cash Loan \/ Deposit Acceptance then Penalty (Sec 271D) = 100% of amount accepted<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cash_Loan_Repayment_%E2%80%93_Sec_269T\"><\/span><span style=\"color: #000080;\"><strong>Cash Loan Repayment \u2013 Sec 269T<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cash Loan Repayment cannot repay INR 20,000 or more<\/li>\n<li>Cash Loan Repayment in cash Includes: Principal + Interest<\/li>\n<li>Penalty (Sec 271E) = 100% of amount repaid<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cash_Receipt_Limit_%E2%80%93_Sec_269ST\"><\/span><span style=\"color: #000080;\"><strong>Cash Receipt Limit \u2013 Sec 269ST : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cash Receipt Limit cannot receive INR 2,00,000 or more in cash. Restrictions like In a single transaction, OR per day, OR per event\/occasion.<\/li>\n<li>Penalty (Sec 271DA) = 100% of amount received<\/li>\n<li>Example: Receiving INR 2.5 lakh cash for sale \u2192 full INR 2.5 lakh penalty risk<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"High-Value_Cash_Deposits_SFT_Reporting\"><\/span><span style=\"color: #000080;\"><strong>High-Value Cash Deposits (SFT Reporting)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Banks report to the Income Tax Department:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Savings A\/c cash deposit \u2265 INR 10 lakh\/year<\/li>\n<li>Current A\/c cash deposit \u2265 INR 50 lakh\/year<\/li>\n<li>This is reporting only, but Triggers scrutiny \/ notices, Must match with ITR &amp; AIS and<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Property_Transactions\"><\/span><span style=\"color: #000080;\"><strong>Property Transactions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cash payment \u2265 INR 20,000 for property violates Sec 269SS<\/li>\n<li>Cash receipt \u2265 INR 2,00,000 violates Sec 269ST<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"CHANGES_RELATING_TO_CASH_PAYMENTSRECEIPTS\"><\/span><span style=\"color: #000080;\"><strong>CHANGES RELATING TO CASH PAYMENTS\/RECEIPTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Cash_PaymentsReceipts_reporting_related_to_MCA_in_ITR_with_Effect_from_01042017\"><\/span><span style=\"color: #000080;\"><strong>Cash Payments\/Receipts &amp; reporting related to MCA &amp; in <a style=\"color: #000080;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\">ITR <\/a>with Effect from 01.04.2017 \u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Section 269ST which has been newly inserted provides that\u00a0<strong>no person shall receive an amount of two lakh rupees or more<\/strong>&#8211;<\/p>\n<ol>\n<li>In aggregate\u00a0<strong>from a person in a day<\/strong><\/li>\n<\/ol>\n<ol start=\"2\">\n<li>A respect of <strong>a single transaction<\/strong><\/li>\n<\/ol>\n<ol start=\"3\">\n<li>In respect of\u00a0<strong>transaction relating to one event or occasion from a person<\/strong><\/li>\n<\/ol>\n<p>Otherwise, than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account.<\/p>\n<p>The section is\u00a0<strong>not applicable<\/strong>\u00a0to the following:<\/p>\n<ul>\n<li>Government<\/li>\n<li>Any banking company<\/li>\n<li>Post office savings banks<\/li>\n<li>Co-operative banks<\/li>\n<li>Any other person as notified by the Central Government<\/li>\n<\/ul>\n<p>Transactions of the nature referred to in Section 271 DA in the Act shall provide for levy of penalty on a person who receives a sum in contravention of the provisions of the proposed section 269ST. The sum equal to the amount of receipt shall be levied as penalty by the Joint Commissioner.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Section_269ST_Section_271D_and_other_cash_restrictions\"><\/span><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24353\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/Say-No-cash-Transation.jpg\" alt=\"Say No cash Transaction\" width=\"1158\" height=\"636\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/Say-No-cash-Transation.jpg 1158w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/Say-No-cash-Transation-300x165.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/Say-No-cash-Transation-1024x562.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/Say-No-cash-Transation-768x422.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/Say-No-cash-Transation-800x439.jpg 800w\" sizes=\"(max-width: 1158px) 100vw, 1158px\" \/><span style=\"color: #000080;\"><strong>Section 269ST &amp; Section 271D and other cash restrictions:\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>Relating to Cash Receipts<\/strong><\/span><\/p>\n<p><em>1)<\/em>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<em><span style=\"text-decoration: underline;\">The provision restricts the receipt of cash above Rs. 2 lacs:<\/span><\/em><\/p>\n<p>Any person who receives above Rs. 2 lacs in cash will be liable to penalty equivalent to the amount received; however, there is no restriction on payment of cash under this section.<\/p>\n<p><em>2)<\/em>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<em><span style=\"text-decoration: underline;\">Receiving cash in a day from a person above Rs. 2 lacs is not allowed:<\/span><\/em><\/p>\n<p>The cash receipt of more than Rs. 2 lacs from a single person in\u00a0<strong>a day<\/strong>\u00a0is not allowed even though the amount has been paid in multiple transactions during the day.<\/p>\n<p><em>3)<\/em> A receipt<em><span style=\"text-decoration: underline;\">\u00a0exceeding Rs. 2 lacs for a single transaction or single event is not allowed.<\/span><\/em><\/p>\n<p><span style=\"color: #000080;\"><strong>Relating to Cash Payments<\/strong><\/span><\/p>\n<p><em>1)<\/em>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<em><span style=\"text-decoration: underline;\">Cash Payments above Rs. 10000\/-:<\/span><\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25433\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/treatment-of-cash-payment.-.jpg\" alt=\"treatment of cash payment.\" width=\"1063\" height=\"764\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/treatment-of-cash-payment.-.jpg 1063w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/treatment-of-cash-payment.--300x216.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/treatment-of-cash-payment.--1024x736.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/treatment-of-cash-payment.--768x552.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/treatment-of-cash-payment.--800x575.jpg 800w\" sizes=\"(max-width: 1063px) 100vw, 1063px\" \/><\/p>\n<p>The earlier provision U\/S 40A(3) restricting cash payments above Rs. 20000\u00a0<strong>for business purposes <\/strong>has also been amended. The limit for payment of expenses by Cash for both capital and revenue expenditures has been reduced from Rs. 20000 to Rs. 10000 per day in aggregate per person.<\/p>\n<p><em>2)<\/em>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<em><span style=\"text-decoration: underline;\">N<\/span><\/em><em><span style=\"text-decoration: underline;\">ow cash payments above Rs. 10,000\/- shall not be allowed as expenses in the <a href=\"https:\/\/carajput.com\/income-tax-services.php\">income tax return.<\/a><\/span><\/em><\/p>\n<p>For capital expenditures, the depreciation shall not be allowed on capital assets in case of payment made in cash.<\/p>\n<p><em>3)<\/em>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<em><span style=\"text-decoration: underline;\">Cash donations exceeding Rs.2, 000 will\u00a0not be eligible for education\u00a0under\u00a0Section 80G.<\/span><\/em><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Consequently:<\/strong><\/span><\/p>\n<ol>\n<li>The limit for receipt of amount in cash has been prescribed as 2, 00,000.<\/li>\n<\/ol>\n<ol start=\"2\">\n<li>In case of violation of such a provision, an equivalent penalty shall be leviable under U\/s 271DA of <a href=\"https:\/\/carajput.com\/income-tax-services.php\">Income Tax Act.<\/a><\/li>\n<\/ol>\n<ol start=\"3\">\n<li>If a person accepts amount of Rs.2, 00,000 or more<\/li>\n<\/ol>\n<p>\uf0b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0By Cash either in one transaction or<\/p>\n<p>\uf0b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0From one person in aggregate in a day or<\/p>\n<p>\uf0b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In relation to one event or occasion from a person<\/p>\n<p>He\/she shall be liable for an equivalent amount of penalty under Section 271DA.<\/p>\n<ol start=\"4\">\n<li>Since cash receipts exceeding Rs. 2 lacs have been made liable for equivalent penalty the TCS provisions requiring collection of tax @ 1% on cash sales exceeding Rs. 5 lacs in case of bullion\/jewelry and Rs. 2 lacs in case of other goods\/services have been withdrawn.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"CASH_REPORTING_REQUIRED_IN_INCOME_TAX_RETURN_FORM_ITR-1_ITR-4S_INTRODUCED_FOR_AY_2017-18\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">CASH REPORTING REQUIRED IN <a style=\"color: #000080; text-decoration: underline;\" href=\"https:\/\/carajput.com\/income-tax-services.php\">INCOME TAX RETURN<\/a> FORM ITR-1 &amp; ITR-4S INTRODUCED FOR AY 2017-18<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>CBDT notified the ITR forms for assessment year 2017-18 on 1<sup>st<\/sup> April 2017. ITR form 1 which is for person having taxable income less than 50lacs and ITR 4S for deemed income under Section 44AD are introduced, requiring declaration of cash deposited during the demonetization period i.e. 09.11.16 to 31.12.16.<br \/>\nColumn Part-E of the ITR-1 form is added, requiring information on cash deposits during such period if the &#8220;aggregate cash deposits&#8221; during this period were Rs 2 lakhs or more.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"CASH_REPORTING_AS_PER_MCA\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">CASH REPORTING AS PER MCA<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Ministry of Corporate Affairs has made an amendment in the Companies Act, 2013 to add provisions for companies to disclose details of SBN in the balance sheet held and transacted during the demonetization period from 08-11-2016 to 30-12-2016.<\/p>\n<p>1) The following clause shall be inserted in Schedule III, in Division I, in Part I under the heading \u201cGeneral instructions for preparation of Balance Sheet\u201d in paragraph 6:<\/p>\n<p><em>\u201cEvery company shall disclose the details of Specified Bank Notes<\/em><em>\u00a0<strong>(SBN)\u00a0<\/strong>held and transacted during the period from 8th November, 2016 to 30th December, 2016 as provided in the Table below:<\/em><\/p>\n<table style=\"height: 289px;\" width=\"818\">\n<tbody>\n<tr>\n<td><strong>\u00a0<\/strong><\/td>\n<td><strong>SBNs<\/strong><\/td>\n<td><strong>Other Denomination Notes<\/strong><\/td>\n<td><strong>Total<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Closing cash in hand as on 08.11.2016<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><strong>(+) Permitted receipts<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><strong>(-) Permitted payments<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><strong>(-) Amount deposited in Banks<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><strong>Closing cash in hand as on 30.12.2016<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em>For the purposes of this clause, the term<\/em><em>\u00a0<strong>\u2018Specified Bank Notes\u2019<\/strong>\u00a0shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.\u201d.<\/em><\/p>\n<p>2) The following clause shall be inserted in the principal Act, in Schedule III, in Division II, in Part I under the heading \u201cGeneral instructions for preparation of Balance Sheet\u201d in paragraph 6<strong>:<\/strong><\/p>\n<p><em>\u00a0\u201cEvery company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the period 08\/11\/2016 to 30\/12\/2016 as provided in the Table below:<\/em><\/p>\n<table style=\"height: 290px;\" width=\"947\">\n<tbody>\n<tr>\n<td><strong>\u00a0<\/strong><\/td>\n<td><strong>SBNs<\/strong><\/td>\n<td><strong>Other Denomination Notes<\/strong><\/td>\n<td><strong>Total<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Closing cash in hand as on 08.11.2016<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><strong>(+) Permitted receipts<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><strong>(-) Permitted payments<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><strong>(-) Amount deposited in Banks<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><strong>Closing cash in hand as on 30.12.2016<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>\u00a0<\/strong><em>For the purposes of this clause, the term \u2018Specified Bank Notes\u2019 shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.\u201d.<\/em><\/p>\n<p>3) MCA has also\u00a0made amendments in the Companies (Audit and Auditors) Rules, 2014 to\u00a0add provisions for auditors to report on company disclosure of SBN during demonetization period from 08-11-2016 to 30-12-2016.<\/p>\n<p><strong>In rule 11, the following clause shall be inserted:<\/strong><\/p>\n<p><em>\u201cWhether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and if so, whether these are in accordance with the books of accounts maintained by the company.\u201d<\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24663\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash..jpg\" alt=\"cash \" width=\"1080\" height=\"907\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash..jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash.-300x252.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash.-1024x860.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash.-768x645.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/05\/cash.-800x672.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<p>We should always use banking channels (RTGS\/NEFT\/cheque). We should Stay Compliant via Use digital payments \/ banking routes, maintain proper invoices &amp; supporting documents, Avoid splitting transactions artificially, Reconcile with AIS \/ Form 26AS and Consult your CA regularly<\/p>\n<p>Cash transactions are heavily restricted. Violations = 100% penalty + tax scrutiny risk. Then most penalties arise from Property deals, Loan entries in books AND Cash sales beyond INR 2 lakh. Even genuine transactions can attract penalty if mode is cash<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Read_more_about_What_is_core_Business_Activity_GST\"><\/span><strong><em><u>Read more about: <\/u><\/em><em><a href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/\">What is core Business Activity GST<\/a><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Read_more_about_Important_decisions_made_at_the_43rd_GST_Council_meeting\"><\/span><strong><em><u>Read more about: <\/u><\/em><em><a href=\"https:\/\/carajput.com\/blog\/43rd-gst-council-meeting\/\">Important decisions made at the \u00a043<sup>rd<\/sup> GST Council\u00a0 meeting<\/a><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>FOR FURTHER QUERIES CONTACT US: W:\u00a0<a href=\"https:\/\/carajput.com\/\">www.carajput.com\u00a0<\/a> \u00a0E:<a href=\"https:\/\/carajput.com\/\"> singh@carajput.com <\/a>\u00a0 T:\u00a0 9-555-555-480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Income Tax Rules &#8211; Cash Transaction Limits Cash Expense Limit \u2013 Sec 40A(3) Cash Expense Limit: Cash payment above INR 10,000\/day per person is NOT allowed as expense For transporters \u2192 limit is INR 35,000\/day Cash Expense Limit Impact: Expense will be disallowed \u2192 higher taxable income For example: You pay INR 25,000 cash to &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,172,9,4],"tags":[5116,5115,535,5114,5117],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3214"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3214"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3214\/revisions"}],"predecessor-version":[{"id":31975,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3214\/revisions\/31975"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}