amendment of Sec. 206C

[Murari Agrawal]

Dear Experts,

The limit of cash payment of ₹ 2 lakhs is for a particular transaction, or the aggregate of cash paid during the year for multiple transactions.

Thanks.

AI Summary

Cash Payment Limit of 2 Lakhs Under Section 206C Applies Per Transaction; 1% TCS for Cash Payments Over Limit. A query was raised regarding whether the cash payment limit of 2 lakhs under Section 206C applies to individual transactions or the aggregate of multiple transactions within a year. An expert clarified that the limit applies on a per-transaction basis for goods and services exceeding 2 lakhs, with a 1% TCS applicable if any part of the payment is in cash. Multiple transactions under 2 lakhs each are not subject to TCS. Another expert referred to Circular No. 23/2016 for further clarification on the matter.