Why has the CDBT cut the limits for cash payments on a daily basis?
Answer
Answer
In a bid to encourage digital transactions and discourage people from making payments in cash, the CDBT has reduced the daily cash limit to Rs.10,000 from Rs.20,000. This is covered by Rule 6DD of the Income Tax Act. This reduction is intended to check tax evasion. Anything above that can be made by cheque / DD/ NEFT / IMPS / Credit cards / debit cards, UPI etc.