From Rs.20,000 to Rs.2 lakh: Check the cash transaction limits that can trigger 100% income tax penalties

Taking cash loans or deposits above Rs.20,000, even from friends, can lead to a penalty equal to the entire amount under Income Tax Sections 269SS and 271D. These rules strictly ban cash transactions exceeding this limit to curb tax evasion. The best way to avoid penalties is to use safer payment methods like UPI, bank transfers, or cheques. Following these rules helps keep your finances compliant and penalty-free. STOP! Cash over Rs.20,000 can cost you big