New Guidelines for Cash Transactions

Introducing the "New Guidelines for Cash Transactions"! These rules are changing how we use cash. Whether you're running a business or managing your money, these guidelines are here to make things clearer and more honest. Let's explore what they mean for you and how they'll shape your finances going forward. Cash Transactions & Tax Time: Keep Track of Your Receipts!

Recent changes in cash transaction regulations are shaking up Tax Season. Let's break it down:

1. ₹10K Limit: Transactions over ₹10,000 in cash? You're under scrutiny under Section 40(A)(3).

2. 95% Audit: Businesses with turnover exceeding ₹95 lakh and cash transactions over 5% of total income? Brace for an audit under Section 44AB.

3. 8% Presumptive Tax: Section 44AD offers simpler tax calculations, but the profit rate just rose to 8%.

4. 80D Restriction: Cash medical expenses above ₹10,000 won't qualify for deductions under Section 80D.

5. ₹2K Donation Limit: Cash donations above ₹2,000 under Section 80G won't fetch tax benefits.

6. 80GGB/GGC Not Allowed: Cash donations for these sections are now prohibited.

7. 80JJAA Restriction: Cash investments in startups under Section 80JJAA are barred.

8. 194N TDS: Cash withdrawals over ₹20 lakh may trigger TDS under Section 194N.

9. ₹20K Loan Limit: Cash loans for businesses are capped at ₹20,000 under Section 269SS/T.

2 Lakh Receipt Limit: Receipts exceeding ₹2 lakh in cash require Tax Deducted at Source (TDS) under Section 269ST.

Phew! That's a lot to keep in mind. Remember, keeping proper records is crucial for a smooth tax season. Need assistance? efiletax can help navigate through the complexities.

Also Read: Direct Tax Collections Surge to 80% of Revised Estimates by February 10th

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