Restrictions on Cash Transactions Under Income Tax Law (As Amended by Finance Act, 2022)

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Description
The Finance Minister Nirmala Sitharaman on 06.11.2020 has had said that India's GDP assessment will improve as more transactions come under the purview. "The more we promote digital payment, the more we make every transaction monitorable, the better we are as a country" she added. She further said temptation of cash usage should be reduced and it should be used only on cause of urgency. A number of new provisions have been introduced in the Income Tax Act,1961 from time to time to put restrictions on cash transactions as well as to incentivise the non-cash transactions. Cash transactions have always played a major role in the Indian Economy and consistently were responsible for generation and accumulation of Black Money. Cash transactions are the main source of tax evasion, black money and malpractices. That is the reason Government encourages digital and cashless economy. In order to limit cash transactions in businesses, Indian government has implemented various sections which can prevent such tax evasion, black money and malpractices. If the assessee crosses the prescribed cash transaction limit in India, heavy penalties will be imposed on the assessee that can be up to 100% of the amount paid/ or received.
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Table of Contents
Chapter 1 : Introduction
Chapter 2 : Different Stages of Evolution of Money 
Chapter 3 : Restrictions on Political Parties
Chapter 4 : Disallowance of Depreciation
Chapter 5 : Disallowance of Expenditure on Specified Business - Cash Payments
Chapter 6 : Expenses Disallowed
Chapter 6A : What if an Expense is allowed on the due Basis and is paid in cash next year
Chapter 7 : Incentives to Encourage Cashless Business Transactions
Chapter 8 : Restrictions on amount Borrowed or repaid on Hundi
Chapter 9 : Restrictions on Income Tax Deductions
Chapter 10 : Compulsorily filing of Income Tax Return
Chapter 11 : TDS on Payment of Certain amounts in Cash
Chapter 12 : Prohibition on Acceptance of Cash Loans Deposits, etc
Chapter 13 : Restrictions on Cash Transactions
Chapter 14 : Mandating Acceptance of Payment through Prescribed Electronic Modes
Chapter 15 : Prohibition on Repayment of Loans or Deposits in cash
Chapter 16 : List of High value cash Financial Transactions Reported to Income Tax Department
Chapter 17 : Compliances in Respect of cash Transactions 
Chapter 18 : Cash Deposits in Banks
Chapter 19 : Treatment of cash sales
Chapter 20 : Payment of Non-Money for Purchase of Property
Chapter 21 : Cash Transactions under GST Answer View
Chapter 22 : Cash Restrictions on Charitable Trusts
Chapter 23 : Treatment of Cash Found During Search Operation
Chapter 24 : Negative Cash Balance
Chapter 25 : Accounting Methods for Income Tax Calculation
Chapter 26 : Demonetisation
Chapter 27 : Assessment of Cash Deposits in Operation Clean Money
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Author Details
Ram Dutt Sharma got his post-graduation (M.Sc.) from M.D. Jniversity, Rohtak in 1980. He joined the Income-tax Department in the ear 1983 and presently working as Income Tax Officer in Faridabad. He vorked at various stations of North-West Region of Income Tax Department. He has wide experience of all wings of Income Tax Department - such as assessment unit, Special Range, TDS Wing, Investigation Wing, intelligence and Criminal Investigation etc. He has been contributing  articles : and addressing on topics relating to Income Tax at Direct Tax, Regional Training Institute, Chandigarh. He has also addressed number of seminars organized by the Income-tax Department, Chartered Accountants, Advocates and various Trade Associations. He is the author of number of rooks on direct taxes, namely Computation of income from salary under Income tax law with tax planning, Computation of income from house property, Formation and Management of Charitable and Religious Trust, Educational and Medical Institutions under income-tax law, Taxation of on-Resident Indians under income-tax law etc. which have been highly appreciated by the readers.