Limit & Penalty on Cash Transaction w.e.f 01.04.2017 -Income Tax ( India)

Don’t use cash for these transactions w.e.f 01.04.2017

S. no.	Section	Cap on cash transaction	Penalty for cash transaction
1.	13A -Exemption to political parties	Receipt of cash donation above Rs 2,000	No exemption
2.	40A(3)- Disallowance for cash expenditure	Payment of any expenditure above Rs. 10,000	No deduction
		Payments for plying, hiring or leasing of goods carriage above Rs 35,000
3.	43(1)- Determination of actual cost of asset	Payment above 10,000 for purchase of asset	Such payment won’t be included in actual cost of asset (viz, No depreciation)
4.	35AD- Investment linked deduction for capital expenditure	Payment above Rs 10,000 for any capital expenditure	No deduction
5.	80D- Health Insurance premium	No cash payment allowed	No deduction
6.	80G – Donations to certain funds and charitable institutions	Donations above Rs. 2,000	No deduction
4.	80GGA- Donations for scientific research or rural development.	Cash donation above Rs. 10,000	No deduction
5.	80GGB – Donations by companies to political parties.	No cash payment allowed	No deduction
6.	80GGC – Donations by any person to political parties	No cash payment allowed	No deduction
7.	269SS- Prohibition on acceptanceof cash loans, deposits, etc.	Rs. 20,000 or more	100% of amount received
8.	269ST- Prohibition on receiving cash	Rs. 2,00,000 or more	100% of amount received
9.	269T – Prohibition on repayment of loans or deposits in cash	Rs. 20,000 or more	100% of amount paid

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