Restriction on receipt of Cash effective 1st April 2017
There have been some important changes in the Income Tax Act regarding cash transactions under section 269ST effective 1st April 2017.
No person should receive an amount of ₹2 lakh or more otherwise than in Account payee Cheque, Bank Draft or ECS through a bank account.
If a person receives any sum in contravention of the above provisions, they shall be liable to pay a sum equal to the amount of such receipt by way of penalty.
Accordingly, the Company would not be accepting loan repayments or other receipts of Rs.2 lakhs or more in cash effective 1st April 2017.