<p>Cash transactions in India could soon cost a lot more with the new <a href="https://www.deccanherald.com/search?q=income%20tax">income tax</a> regulations. Investment banker Sarthak Ahuja, in a post on social media platform LinkedIn, warned of unexplained cash found during a search attracting a massive 84 per cent tax, including penalties, surcharges, and <a href="https://www.deccanherald.com/search?q=cess">cess</a>.</p><p>In the Post, Ahuja explains key provisions, the revised cash-handling rules and the heavy penalties that now apply to individuals and businesses who possess unexplained cash. </p>.Supreme Court raps Income Tax Department for filing appeal in decided matter.<p>“Everyone should know the regulations that are now coming to order,” he wrote, highlighting that 84 per cent tax liability applies if unexplained cash is discovered at one's premises during a search or seizure by the Income Tax Department.</p><p>The real concern, he says, is that the chances of being flagged have never been higher.</p><p><strong>How will the tax department be notified?</strong></p><p>The tax department is being automatically notified of large cash movements. </p><p>According to Ahuja, If you withdraw over Rs 10 lakh in cash in a financial year, the bank will report it to the Income Tax Department. If more than Rs 20 lakh is withdrawn, the bank will deduct TDS (tax deducted at source) on the withdrawal. Further, repeated large withdrawals could prompt the department to initiate a search or seizure, particularly if the source is unclear.</p><p><strong>Zero tolerance for shady cash deals</strong></p><p>Meanwhile, some transactions also attract 100 per cent penalty, meaning you could pay double the amount in total if you receive over Rs 2 lakh in cash from a single customer in a day, accepting cash loans of any amount and receiving Rs 20,000 in cash when selling property</p><p>“These provisions are very real and already in force,” Ahuja warns.“The government can literally catch anyone today with the amount of information they have on your transactions.”</p><p>The rules are a part of the government's broader crackdown on black money, unaccounted wealth, and informal transactions. </p><p>While several provisions are not new, enforcement has become stricter with better data-sharing between banks, registrars, and tax authorities.</p><p>It now becomes imperative for businesses and individuals dealing in cash to document each transaction or face consequences. </p>
<p>Cash transactions in India could soon cost a lot more with the new <a href="https://www.deccanherald.com/search?q=income%20tax">income tax</a> regulations. Investment banker Sarthak Ahuja, in a post on social media platform LinkedIn, warned of unexplained cash found during a search attracting a massive 84 per cent tax, including penalties, surcharges, and <a href="https://www.deccanherald.com/search?q=cess">cess</a>.</p><p>In the Post, Ahuja explains key provisions, the revised cash-handling rules and the heavy penalties that now apply to individuals and businesses who possess unexplained cash. </p>.Supreme Court raps Income Tax Department for filing appeal in decided matter.<p>“Everyone should know the regulations that are now coming to order,” he wrote, highlighting that 84 per cent tax liability applies if unexplained cash is discovered at one's premises during a search or seizure by the Income Tax Department.</p><p>The real concern, he says, is that the chances of being flagged have never been higher.</p><p><strong>How will the tax department be notified?</strong></p><p>The tax department is being automatically notified of large cash movements. </p><p>According to Ahuja, If you withdraw over Rs 10 lakh in cash in a financial year, the bank will report it to the Income Tax Department. If more than Rs 20 lakh is withdrawn, the bank will deduct TDS (tax deducted at source) on the withdrawal. Further, repeated large withdrawals could prompt the department to initiate a search or seizure, particularly if the source is unclear.</p><p><strong>Zero tolerance for shady cash deals</strong></p><p>Meanwhile, some transactions also attract 100 per cent penalty, meaning you could pay double the amount in total if you receive over Rs 2 lakh in cash from a single customer in a day, accepting cash loans of any amount and receiving Rs 20,000 in cash when selling property</p><p>“These provisions are very real and already in force,” Ahuja warns.“The government can literally catch anyone today with the amount of information they have on your transactions.”</p><p>The rules are a part of the government's broader crackdown on black money, unaccounted wealth, and informal transactions. </p><p>While several provisions are not new, enforcement has become stricter with better data-sharing between banks, registrars, and tax authorities.</p><p>It now becomes imperative for businesses and individuals dealing in cash to document each transaction or face consequences. </p>
