Mode of undertaking transactions
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 186(1) of Income Tax Act 2025
186(1) No person shall receive two lakh rupees or more––
- (a) in aggregate from a person in a day; or
- (b) in respect of a single transaction; or
- (c) in respect of transactions relating to one event or occasion from a person,
except through—
- (i) an account payee cheque;
- (ii) account payee bank draft;
- (iii) electronic clearing system through a bank account; or
- (iv) any other electronic mode, as prescribed.
Section 186(2) of Income Tax Act 2025
186(2) Sub-section (1) shall not apply to—
- (a) any receipt by Government, any banking company, post office savings bank, or co-operative bank;
- (b) transactions of the nature referred to in section 185;
- (c) such other persons or class of persons or receipts, as notified by the Central Government.
