Cash Transaction Penalties under Indian Tax Law : Clause 450 of the Income Tax Bill, 2025 Vs. Section 271D of the Income-tax Act, 1961

Cash transaction penalty: acceptance of prohibited loans or deposits triggers penalty equal to amount received under the new clause.

Clause 450 imposes a penalty equal to the amount of any loan, deposit or specified sum taken or accepted in contravention of the substantive prohibition, centralizes authority to impose that penalty with the Assessing Officer, and leaves key interpretive and procedural questions-such as the definition of 'specified sum', the availability of a reasonable cause exception, and limitation and hearing procedures-to be clarified elsewhere in the Bill or by administrative guidance.