New Delhi, July 7 -- To curb tax evasion and financial crimes, the Income-tax Act, 1961, prescribes several limits on cash transactions and other financial dealings. These rules are aimed at improving transparency, accountability and tax compliance.

Breaching these thresholds can lead to penalties, loss of tax benefits and increased scrutiny by the Income Tax Department. Whether you are accepting cash, making donations, withdrawing money, using your credit card or buying property, understanding these limits can help you stay compliant and avoid unnecessary notices.

Under Section 269ST of the Income-tax Act, you cannot receive Rs.2 lakh or more in cash from a person in a single day, for a single transaction, or in respect of one event or...