Agency News
Understanding the Cash Transaction Limits under the Indian Income Tax Act and Other Relevant Laws
By Bhagat Singh Tomar, Member, All India Federation of Tax Practitioners
In India, cash transactions have long been scrutinized to curb tax evasion and promote transparency. The Indian government has introduced various legal provisions under the Income Tax Act, 1961, and other relevant laws to limit the use of cash in business and personal transactions. Understanding these regulations is crucial for taxpayers to avoid hefty penalties. Here’s a detailed breakdown of the major provisions:
Section 269ST – Restriction on Cash Receipts
Under the Income Tax Act, Section 269ST prohibits individuals and businesses from receiving INR 2,00,000 or more in cash:
In aggregate from a person in a single day.
For a single transaction.
For transactions relating to one event or occasion.
Penalty: A penalty equal to the amount of cash received will be levied if this limit is violated.
Section 40A(3) – Payments in Cash for Business Expenditure
For business expenditures, Section 40A(3) mandates that any payment exceeding INR 10,000 made to a single person in a day must be done through banking channels (cheque, draft, or electronic means). This section is aimed at curbing the use of black money in business operations.
Penalty: Such payments will be disallowed as business expenses, resulting in an increased taxable income.
Section 43 – Cash Payments for Acquisition of Assets
Under Section 43, if a taxpayer makes payments exceeding INR 10,000 in cash to acquire an asset, the expenditure will not be included in the cost of acquisition for the purpose of depreciation.
Impact: The taxpayer will lose the depreciation benefit on such transactions.
Section 269SS – Restriction on Cash Loans and Deposits
Section 269SS prohibits accepting loans, deposits, or any other specified sum in cash exceeding INR 20,000 from a single person. This aims to regulate unaccounted loans in the system.
Penalty: An amount equal to the loan or deposit taken will be levied as a penalty.
Section 269T – Repayment of Loans and Deposits
In addition to restricting loan acceptance, Section 269T restricts repayment of loans or deposits in cash exceeding INR 20,000. The repayment must be made via banking channels.
Penalty: An equivalent amount of penalty will be imposed for any violation.
Prohibition under Benami Transactions (Prohibition) Act
The Benami Transactions (Prohibition) Act, 1988 also restricts cash transactions intended to hide the identity of the real owner. Any cash deals involving benami properties are strictly prohibited and can result in the confiscation of the property.
Penalty: Offenders face penalties and imprisonment for up to seven years.
Cash Transactions for Donations
The Income Tax Act also restricts donations in cash. Donations exceeding INR 2,000 must be made via cheque, draft, or electronic means to claim tax benefits under Section 80G.
Limits on Cash Transactions in Property
The government has imposed restrictions on cash transactions in real estate. As per recent amendments, property transactions above INR 30 lakh must be reported to the Income Tax Department, and cash payments are highly discouraged to avoid scrutiny.
Cash Expenditure in Political Contributions
Under Section 13A, cash donations to political parties exceeding INR 2,000 are not permitted. Contributions should be made through banking channels for transparency.
Conclusion
These regulations are part of the government’s ongoing efforts to move towards a cashless economy, promoting accountability and transparency in financial transactions. Non-compliance with these cash transaction limits can attract severe penalties, making it essential for individuals and businesses to remain vigilant and adopt digital modes of payment.
Bhagat Singh Tomar is a distinguished member of the All India Federation of Tax Practitioners and a certified GST Practitioner. With extensive expertise in tax laws, he offers professional advice on a range of financial and tax-related matters.
Agency News
Hi Tech Universe Launches Real Estate and Forex Consultancy Services
Hi Tech Universe has launched its investment consultancy services. The company gives a fresh twist to both real estate and forex industries with expert advice, put into practice with the benefit of modern digital tools. For the investor, this consultancy makes the difference in complicated areas. It is transparent to the clients, empowering them while carefully examining the market sets it apart as a go-to name among both novice and professional investors who want steady profits in shifting financial tides. Through the client-centered approach, it has defined new ways to perceive and deal with property and currency investments.
Hi Tech Universe provides an all-inclusive range of investment opportunities in the real estate sector, from commercial to residential properties that have high growth potential. In-depth market research by the consultancy identifies the properties that fit the diversified goals of investors, such as those who are looking for both short-term returns and long-term stability. The emerging market trends are brought out to the clients to make proper decisions even when there is fluctuation. The focus here is on stability and potential growth, which gives the impression that the company values sustainable real estate options as something that could appeal to any seasoned investor or newcomer alike.
Within the forex section, Hi Tech Universe offers clients a very secure trading platform with access to up-to-date real-time information and risk management capabilities. This, in turn, enables clients to respond fast to any currency market shifts with more confidence, because they can rely on being given fresh, updated information and solid analytical insights. The company’s platform is efficient and economical, with minimal transaction fees and speedy processing times, allowing for maximum returns by maintaining control of transaction costs within the hands of the investor, thus emphasizing its stance on a competitive trading experience that is both customer-friendly and efficient in striking an opportunity balance.
It has incorporated education and transparency above all else that a regular consultancy might provide. They take clients through every aspect of their investment, thus arming them with every vital information to make sound decision-making. This is enhanced through webinars, tutorial sessions, and individual consultations with clients. Through all these, the company facilitates an atmosphere of transparency between the company and the client to understand the depth at which their financial decisions exist. Dedicated experts are there to help for the entire process by furnishing continuous support, cultivating trust and confidence among the investors, and emphasizing the intent of the company to provide power to the clients.
In embracing digital innovation, Hi Tech Universe uses developed technologies to make the clients’ experience easier. A virtual real estate tour easily lets the clients view such properties from anywhere and with greater accuracy. The simulated forex trading environment enables the client to experience the system without risk while gaining confidence in entering the real markets. The online tools offered by the company provide real-time data that enables the client to monitor the performance of his or her portfolio anywhere and at any given time. Indeed, it is a fusion of digital solutions reflecting commitment to a more modern and user-friendly approach to investment management.
Hi Tech Universe is client-centric. This is because the consultancy provides solutions that cater to unique financial goals and risk preferences that are different for every client, thus showing personalization in commitment. It caters to customized strategies as well as smooth onboarding and portfolio management for easy intuition. Focusing on independence in finances, it ensures that the stability of the client’s finance is achieved through diversified reliable investment options. This commitment to individualized service speaks to the role of Hi Tech Universe as a trusted partner in guiding clients toward their financial goals.
At Hi Tech Universe, innovation and results always come out in the process of redefining consulting on investment with a fierce focus on clients’ winning. It is always the solid source whenever you want your savings to build into real estate financial portfolios and generate enormous returns and also an excellent provider for forex wealth. From empowering, giving account, to having a defined strategy approach, Hi-Tech Universe positions itself as one of those essential allies and an excellent investor to secure such a person’s financial fate.
Agency News
The All-in-One Wellness Solution: How StuddMuffyn Life’s Multivitamins are Redefining Nutrition
Ludhiana, Punjab, India, November 09, 2024: The Indian wellness market is saturated with varied products, but a Punjab-based brand has been making a mark with its innovation and quality. Founded by the dynamic duo of Paras Tomar and Ankur Bhati, StuddMuffyn Life has skyrocketed to success, achieving a remarkable turnover of 300 crores in the previous year.
Paras, an actor and influencer-turned entrepreneur with expertise in skincare, and Ankur, a data-driven expert with sharp e-commerce insights, combined their unique strengths to create a brand that resonates with health-conscious consumers across the nation.
Central to the brand’s impressive product lineup is their game-changing multivitamin tablets, designed to boost energy and overall health. These carefully formulated supplements are not just another addition to your medicine cabinet – they’re a comprehensive solution to modern nutritional challenges.
Presenting The Multivitamin Marvel
The multivitamin tablets are meticulously crafted to provide the Recommended Daily Amount (RDA) of essential vitamins, ensuring your body receives optimal nutrition.
The benefits of this powerhouse supplement are far-reaching:
1. Holistic Health Boost: From promoting lustrous hair and radiant skin to increasing energy levels and maintaining a healthy metabolic rate, consumers often consider these multivitamins the best supplement for hair growth.
2. Immune Support: Packed with immunity boosters like Vitamins C, D, E, and Folic Acid, these tablets fortify your body’s natural defenses.
3. Bone and Muscle Health: Key ingredients support bone strength and aid in muscle building, making it an excellent choice for fitness enthusiasts.
4. Cognitive and Ocular Benefits: The formula includes components that boost brain and eye health, addressing often-overlooked aspects of overall wellness.
5. Enhanced Athletic Performance: For the sports-minded, these multivitamins can help elevate performance levels.
A Potent Blend of Nature and Science
StuddMuffyn Life’s multivitamin tablets boast an impressive array of ingredients, including essential minerals like Iron, Zinc, and Calcium, paired with a robust vitamin profile featuring Vitamins C, B complex, A, K, and D. But what truly sets this formula apart is its inclusion of powerful natural extracts:
– Boswellia and Turmeric for their anti-inflammatory properties
– Ginseng for energy and stress relief
– Grape Seed and Pine Bark extracts, rich in antioxidants
– Ginkgo Biloba for cognitive support
– Garlic and Spirulina for their numerous health benefits
This thoughtful combination of vitamins, minerals, and herbal extracts create a synergistic effect, addressing multiple aspects of health in one convenient tablet.
With continuous growth and innovation, StuddMuffyn Life’s commitment to quality and effectiveness remains constant. With its multivitamin tablets leading the charge, the brand is not just selling supplements – it’s promoting a holistic approach to health and wellness that resonates with health-conscious individuals across India.
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Agency News
Industry leaders, including Nikhil Jathar, Krishna Pandya, Mayuresh Phadke & others, share insights on funding strategies and inclusive growth at the event
Nagpur, Maharashtra – November 2024 – The 7th edition of the Local Startup Meet (LSM) recently concluded in Nagpur, Maharashtra, organized by the Entrepreneurship Cell of IIT Kharagpur. The event successfully brought together a diverse group of entrepreneurs, CEOs, and startup founders to engage in meaningful discussions about the evolving startup ecosystem.
A key highlight of the meeting was the panel discussion titled “How Funding Choices Shape Company Culture and Values,” which featured contributions from several esteemed industry leaders. Among the panelists were:
Mr. Ashutosh Naik, Group CCO at Groww
Mr. Nikhil Jathar, Co-founder and CTO of AvanSaber
Mr. Krishna Pandya, Founder & CEO of V21 CAPITAL
Mr. Mayuresh Phadke, Co-founder at Lemma Technologies
Mr. Kush Mehrotra, Vice President at MapMyIndia
The panelists shared valuable perspectives on the critical role that funding sources play in shaping a company’s culture and long-term objectives.
Key Insights from the Panel Discussion:
Impact of Funding Sources: Panelists explored how different types of investors, such as venture capitalists and impact investors, influence a company’s priorities, whether it be growth and profitability or social and environmental impact.
Values Alignment: Emphasis was placed on the importance of aligning a startup’s values with those of its investors to maintain a cohesive and motivated organizational culture.
Inclusive Growth: Strategies for fostering diversity and creating equitable opportunities within startups were discussed, highlighting the significance of inclusive growth in building sustainable businesses.
In addition to the discussion, the panelists played a pivotal role in evaluating and providing feedback to participating startups. They assessed funding eligibility, offered strategic suggestions, and recommended improvements to help startups refine their business models and growth strategies. This interactive judging session provided entrepreneurs with actionable insights to enhance their ventures and align them with best practices in the industry.
Reflecting on the event, Mr. Nikhil Jathar shared, “It was inspiring to see passionate entrepreneurs building sustainable, value-driven businesses. Aligning culture with growth strategies is essential for long-term success.”
Vinay Raut, Shivraj Gulve, and Khush Duggar, a few event organizers, remarked, “The participation of experienced leaders added immense value to our discussions. Their real-world experiences gave our attendees actionable insights to navigate the complexities of building and scaling their startups.”
The Local Startup Meet 2024 also featured interactive sessions and networking opportunities, allowing entrepreneurs to connect with potential mentors, investors, and peers. Organizers expressed their gratitude to all speakers and participants for making the event a success.
About Local Startup Meet (LSM)
The Local Startup Meet is an annual event organized by the Entrepreneurship Cell of IIT Kharagpur, aimed at fostering a vibrant startup community by facilitating knowledge exchange, networking, and collaboration among entrepreneurs, industry leaders, and aspiring startup founders.
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