Overview

• The Supreme Court has issued new directives to enforce the ₹2 lakh cash transaction cap under Section 269ST of the Income Tax Act.
• Courts are now required to notify the Income Tax Department of any violations, ensuring prompt investigation and action.
• Hefty penalties, including fines, are emphasized for individuals receiving cash amounts exceeding the legal limit.
• Exemptions to the cash cap include withdrawals from banks, post offices, and transactions by government-authorized entities.
• The measures aim to strengthen compliance, reduce unaccounted money flows, and accelerate the shift toward a digital economy.