Don'ts

1) Don't accept cash in excess of Rs. 2 lakh rupees from a single person or relating to a single transaction or a single event or occasion during a year.

2) Receive or Pay more than Rs. 20,000 in cash in traction relating to immovable property.

3) Pay in excess of Rs.10,000 in relating to any expense, except to proviso to section 40A(3), in a single day to a single entity.

4) Donation in excess of Rs. 2,000 in cash.

5)  Accepting/Taking loans/Deposits in excess of Rs. 20,000 in cash (except from Government, Govt. Co., Banking Co., companies or bodies as notified in notified by Central Government in its official gazette.)

Contravention to these may attract heavy penalties, litigation under the various acts and even imprisonment. So it is always good to be safe than sorry. As they say, prevention is better than cure, so make sure to consult your advisor before making any such transaction and make sure to be on the right side of the law.

The author is a tax and finance consultant working with a global consultancy firm working with various MNC's and startups by providing them virtual CFO facility, Acquiring various registrations and licences, also providing taxation and financial advisory at various hierarchies.

For taking any help or for providing suggestions, feedbacks, I can be reached on my email "cakrishnabansal@gmail.com.