When to say no to cash: A checklist for managing your daily transactions

The rules for cash transactions are stringent. Ensure that you stay within specified limits

Recently, the Central Board of Direct Taxes (CBDT) issued an advisory on its website warning individuals to not accept cash above permissible limits. The present government has been lowering the threshold of cash transactions to reduce black money and promote cashless transactions.

Many continue to deal in cash due to lack of awareness. Take the example of Deepak Sahani. When selling his land valued at Rs 22 lakh, the buyer proposed to pay Rs 6 lakh in cash as advance. Sahani initially agreed. But his chartered accountant (CA) warned him that it’s above the permissible limits under the Income-Tax (I-T)