What is Consequences of making cash transactions above the prescribed limit?
Nexa Consultancy | Startup & Finance Glossary
Section 269ST of the Income Tax Act prohibits receiving an amount of ₹2 Lakhs or more in cash from a person in a single day, for a single transaction, or in relation to a single event. Violation attracts a penalty equal to the amount received.
Startup Example: A startup sells goods worth ₹3 Lakhs to a customer and accepts the entire payment in cash. The startup is liable for a penalty of ₹3 Lakhs.
Our accounting services help track and flag such transactions.