Indian Income Tax Awareness

  Section 269SU of Income Tax Act — Mandatory Digital Payment Facility Section 269SU is a compliance-focused provision that pushes businesses toward a less-cash economy . It requires certain businesses to provide digital payment options to customers. ✅ 1. Basic Requirement of Section 269SU Specified businesses must mandatorily provide prescribed electronic payment modes to their customers — in addition to any other payment methods. 👉 It is about offering digital payment , not forcing customers to use it. ✅ 2. Who Must Comply? Section 269SU applies to: ➡ Businesses whose total sales/turnover/gross receipts exceed ₹50 crore in the immediately preceding financial year . If turnover crosses this limit → compliance becomes mandatory in the current year. ✅ 3. Prescribed Digital Modes (as notified) The government has prescribed low-cost digital payment systems such as: Debit card powered by RuPay UPI (BHIM-UPI) UPI QR code Other notified electronic modes These modes must be available ...

  Section 269ST of Income Tax Act — Cash Receipt Restriction  Section 269ST is a strict anti-cash provision. It prohibits receiving large amounts in cash to curb black money and ensure traceable transactions. ✅ 1. Basic Rule of Section 269ST No person shall receive ₹2,00,000 or more in cash : From a person in a day , OR For a single transaction , OR For transactions relating to one event/occasion If any of the above limits are crossed → cash receipt is illegal . ✅ 2. Important — Three Separate Triggers Violation happens if any one condition is met: ✔ (A) From a person in a day Cash received from one person in a single day ≥ ₹2 lakh. ✔ (B) Single transaction Even if paid on different days — if linked to one transaction ≥ ₹2 lakh. ✔ (C) Event/occasion Cash receipts connected to one event (like wedding booking, party, function) ≥ ₹2 lakh. ✅ 3. Allowed Modes of Receipt Amounts ≥ ₹2 lakh must be received via: Account payee cheque Account payee bank draft Electronic transfer (NEF...

Section 269T of Income Tax Act — Repayment of Loan/Deposit in Cash :- Section 269T is an anti-tax-evasion provision. Its main objective is to prevent cash transactions in repayment of loans or deposits so that financial dealings remain traceable. Below is a clear breakdown. ✅ 1. What Section 269T Says (Basic Rule) A person cannot repay any: Loan Deposit Specified advance of ₹20,000 or more in cash . Repayment must be done only through banking channels . ✅ 2. What Is Covered Under This Section? Section 269T applies when repayment involves: ✔ Loan ✔ Deposit ✔ Advance related to immovable property ✔ Interest along with principal If the total amount due is ₹20,000 or more, cash repayment is prohibited. ✅ 3. Allowed Modes of Repayment Repayment is permitted only through: Account payee cheque Account payee bank draft Electronic clearing system (ECS) Digital banking modes (UPI/NEFT/RTGS etc.) 👉 Any cash repayment above the limit is illegal under this section. ✅ 4. When Does the ₹20,000...

📜 Section 185 — Mode of Taking or Accepting Certain Loans, Deposits and Specified Sum 📌 Core Rule Under Section 185, no person shall take or accept from another person a loan, deposit, or specified sum in cash if: The amount or aggregate amount of such loan, deposit or specified sum; or The existing amount outstanding from that person (i.e., any previously taken/accepted loan, deposit or specified sum that has not yet been paid back), or The total of both the above , is ₹20,000 or more on the date of taking/accepting it — unless the amount is received by one of the specified modes : Account payee cheque , Account payee bank draft , Electronic Clearing System (ECS) through a bank account, Other prescribed electronic modes (like UPI, RTGS, NEFT, etc.). In simple terms — if you receive loans or deposits from a person and the total cash you get from them reaches ₹20,000 or more, you cannot accept it in cash . It must go through a traceable banking or electronic mode. 🧾 Who Does...