Section 186
Mode of undertaking transactions.
About this Act
An Act to consolidate and amend the law relating to income-tax.
(1) No person shall receive an amount of ₹ 200000 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; or
(ii) account payee bank draft; or
(iii) electronic clearing system through a bank account; or
(iv) any other electronic mode, as may be prescribed.
(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 may be notified by the Central Government.
(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; or
(ii) account payee bank draft; or
(iii) electronic clearing system through a bank account; or
(iv) any other electronic mode, as may be prescribed.
(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 may be notified by the Central Government.
Notes
29. Substituted for the following by the Finance Act, 2026, w.e.f. 1-4-2026: “he shall be punishable,— (i) in a case, where the amount of tax, penalty or interest which would have been evad ed, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds twenty-five lakh rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years, and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years, and with fine.”