Restrictions on Cash Transactions

1 Introduction ……………………………………………………………………………………………… 1
2 Different stages of Evolution of Money …………………………………………………….. 8
3 Restrictions on Political Parties [Section 13A]………………………………………….. 13
4 Disallowance of Depreciation under Section 32 on
Cash Payments [Second proviso to Section 43(1)]……………………………………. 22
5 Disallowance of Expenditure on Specified
Business – Cash payments [Section 35AD(8)(f)] ………………………………………. 24
6 Disallowance for Cash Payments exceeding
Prescribed Limit [Section 40A(3)] ……………………………………………………………. 25
7 If an expense is Recorded in the Prior Year but paid
for in the Next Year [Section 40A(3A)]…………………………………………………….. 81
8 Incentives to encourage Cashless Business Transactions
[Sections 44AB & 44AD]………………………………………………………………………….. 89
9 Cash Transactions in Tax Audit Report – Reporting Requirement……………. 95
10 Unexplained Cash Attracts Section 69A…………………………………………………… 99
11 Restrictions on Amount Borrowed or Repaid on Hundi [Section 69D]….. 111
12 Restrictions on Income Tax Deductions [Chapter VIA] …………………………. 126
13 Compulsorily filing of Income Tax Return
[Seventh proviso to section 139(1)]………………………………………………………… 129
14 TDS from Cash Withdrawal Exceeding Rs. 1 Crore from
Banks or Co-operative Bank or Post Office [Section 194N]…………………….. 132
15 Prohibition on Acceptance of Cash Loans,
Deposits, etc. [Section 269SS]…………………………………………………………………. 150
16 Restrictions on Cash Transactions [Section 269ST] ……………………………….. 182
17 Mandating acceptance of Payments through prescribed
Electronic Modes [Section 269SU] …………………………………………………………. 190
18 Prohibition on repayment of Loans or Deposits in Cash [Section 269T] … 196
19 List of High Value Cash Financial Transactions reported to Income
Tax Department…………………………………………………………………………………….. 213
20 Compliances in respect of Cash Transactions
[Section 285BA read with rule 114E] ……………………………………………………… 219
21 Cash Deposits in Banks …………………………………………………………………………. 222
22 Treatment of Cash Gifts…………………………………………………………………………. 262
23 Treatment of Cash Sales ………………………………………………………………………… 268
24 Cash Discount……………………………………………………………………………………….. 285
25 Payment of on-Money for Purchase of Property……………………………………. 289
26 Cash Transactions under GST ……………………………………………………………….. 301
27 Cash Restrictions on Charitable Trusts ………………………………………………….. 303
28 Cash transactions in Agricultural Sector ……………………………………………….. 310
29 Treatment of Cash found during Search Operation……………………………….. 327
30 Cash Book – Test to be Satisfied……………………………………………………………… 349
31 Cash in Hand : Test to be Satisfied…………………………………………………………. 358
32 Negative Cash Balance ………………………………………………………………………….. 364
33 Accounting methods for Income Tax Calculation [Section 145]……………… 371
34 Demonetisation……………………………………………………………………………………… 381
35 Assessment of Cash Deposits in Operation
Clean Money (OCM) Cases …………………………………………………………………… 406
36 Revision of orders under Section 263 of the Income Tax Act,
1961 over unexplained Cash Deposit…………………………………………………….. 442
37 Penalty for Failure to Comply with the Provisions of
Section 269SS [Section 271D] …………………………………………………………………. 455
38 Penalty for Failure to provide Facility to Pay Through Prescribed
Electronic Modes [Section 271DB]…………………………………………………………. 521
39 Penalty for Failure to Comply with the
Provisions of Section 269T [Section 271E] ……………………………………………… 525
40 Prosecution Proceedings ……………………………………………………………………….. 539