The Statutory Brief

IT Act 1961 → 2025 / Section 269ST

Cash transactions

Section 269ST → Section 186

No cash receipt of ₹2 lakh or more

Section 269ST of the old Income-tax Act, 1961 · new section 186 under the Income-tax Act, 2025

New reference Section 186

Income-tax Act, 1961Section 269ST

  • No person shall receive ₹2 lakh or more in cash from a person in a day, for a single transaction, or for one event
  • Exceptions: Government, banks, post office, co-operative banks, 269SS transactions
  • Penalty equal to the amount received (271DA)

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 186

  • Same restriction, now section 186
  • ₹2,00,000 threshold and the three tests (per day, per transaction, per event)
  • Same exceptions, plus persons notified by the Government

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered; limit and exceptions unchanged.

Practice notes

  • Check the corresponding penalty section in the 2025 Act (old 271DA) before advising.
  • Cash loans and deposits are tested separately under section 185 (old 269SS).

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the cash receipt limit under the new Income Tax Act 2025?

₹2 lakh — no person may receive ₹2,00,000 or more in cash from a person in a day, for a single transaction or for one event (section 186).

What is section 269ST called in the new Income-tax Act, 2025?

Section 269ST of the Income-tax Act, 1961 corresponds to Section 186 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 269ST under the new Income Tax Act?

Renumbered; limit and exceptions unchanged.

Is section 269ST still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 269ST of the 1961 Act. Section 186 of the 2025 Act applies from tax year 2026-27.

Related sections

269SS→185No cash loans, deposits or specified sums of ₹20,000 or more40A(3)→36Disallowance of cash expenses above ₹10,000 a day (and related-party payments)194N→393TDS of 2% on cash withdrawals above ₹1 crore