You can make cash transactions of more than 2 lakh rupees on these 5 positions
According to the new circular issued on Monday from the Income Tax
Department, you can pay the full amount of loan in cash to HFC (Housing
Finance Company) and NBFC (Non-Banking Finance Company). But every
installment given by you must be less than 2 lakh rupees. Let me tell
you that according to a new Income Tax Act implemented after the current
budget, more than 2 lakh transactions will be considered illegal and
there is a provision for penalties on doing so.
This law has created an illusion among people whether a EMI of a loan should be less than two lakhs, or if the full amount of the loan is more than two lakh, the penalty will be imposed. In view of this illusion, the Ministry of Finance issued a circular on July 3, 2017 and said that for the purpose of cash payment this kind of prohibition applies only to single loan installment, not on the full loan amount.
Where does not apply cash limit of 2 lakhs
The information provided from the revenue department has said that the cash transaction limit of 2 lakh rupees will not apply to credit card payment. Apart from this, the limit will be applicable to the designated bank representative and issuing prepaid products from the banks, letting the elect to know that cash transactions of 2 lakh rupees or more are prohibited from April 1, 2017 under financial law 2017. However, some cases have been relieved. The Income Tax Department has given relief to the 5 units of this act by an ordinance.
This law has created an illusion among people whether a EMI of a loan should be less than two lakhs, or if the full amount of the loan is more than two lakh, the penalty will be imposed. In view of this illusion, the Ministry of Finance issued a circular on July 3, 2017 and said that for the purpose of cash payment this kind of prohibition applies only to single loan installment, not on the full loan amount.
Where does not apply cash limit of 2 lakhs
The information provided from the revenue department has said that the cash transaction limit of 2 lakh rupees will not apply to credit card payment. Apart from this, the limit will be applicable to the designated bank representative and issuing prepaid products from the banks, letting the elect to know that cash transactions of 2 lakh rupees or more are prohibited from April 1, 2017 under financial law 2017. However, some cases have been relieved. The Income Tax Department has given relief to the 5 units of this act by an ordinance.
Know that there is no limit on cash transactions.
- Receipt from bank representative from bank or co-operative banks
- The amount received in return for payment of bills from the company or organization issuing a credit card.
- The amount received by the agent from people issuing prepaid payments under section 269 ST
- The amount received from a white label ATM operator from retail outlets.
- Amount not included in total revenues under Income Tax Act, 1961 (17A)
- Receipt from bank representative from bank or co-operative banks
- The amount received in return for payment of bills from the company or organization issuing a credit card.
- The amount received by the agent from people issuing prepaid payments under section 269 ST
- The amount received from a white label ATM operator from retail outlets.
- Amount not included in total revenues under Income Tax Act, 1961 (17A)
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