-
Apr 17, 2025
-
Supreme Court tightens grip on cash deals: Courts must report transactions over Rs 2 lakh to I-T department
In a significant judgment aimed at checking black money and tax evasion, the Supreme Court on Wednesday asked that the lower courts to notify the income tax department if any suit claims to have made a cash transaction of Rs 2 lakh and above. This is to intimate the tax authorities to verify the transactions and check violation of Section 269 ST of the Income Tax Act, 1961.
A Bench comprising Justices JB Pardiwala and R. Mahadevan said that whenever, a sum of Rs 2 lakh and above is claimed to be paid by cash towards consideration for conveyance of any immovable property in a document presented for registration, the sub-registrar shall inform the income tax authority, who shall follow the due process in law before taking any action.
Under Section 269ST of the Income Tax Act, it is prohibited for any person to receive an amount of Rs 2 lakh or more in cash, from a person in a day, either for a single transaction or for multiple transactions related to one event or occasion.
|