Income Tax Department warns against cash transactions to avoid hefty penalties

The Income Tax Department is warning individuals to avoid cash transactions, as penalties can reach 100% of the transaction value. This follows a recent brochure released on January 2, 2025, highlighting the risks of cash dealings. Key cash transactions under scrutiny include loans over ₹20,000, cash receipts above ₹2 lakh, and cash donations exceeding ₹2,000. Violating these rules can result in significant penalties, emphasizing the government's push for digital payments. Taxpayers are reminded that the deadline for filing income tax returns is July 31, 2025. Non-compliance with cash transaction regulations may lead to severe financial consequences.