Cash transaction scrutiny and a full amount cash penalty now bar large cash vehicle purchases and demand compliance.
Purchasing a car entirely in cash invites tax authority scrutiny about the source of funds; maintaining books of account, filing income tax returns and preserving evidence of taxed receipts and savings are primary safeguards. Dealers have been asked to report high value cash sales, and a fiscal amendment imposes a penalty equal to the transaction amount on large cash dealings, effectively prohibiting them; the article raises but does not resolve whether cheque payments affect tax liability. (AI Summary)