This cash payment twist is dumb, as a banker I know that nowadays there are restrictions on cash withdrawals at banks (TDS is deducted at 2% if withdrawal exceeds Rs 20 lakh for people who haven't filed ITR for 3 years and even if you have filed, above Rs 1 crore the TDS is deducted at 2%, if you havent filed for 3 years- 5%)
And there are a lot of checks on huge cash deposits nowadays, IT dept keeps a close check on bank accounts which have a core banking system, which has gotten easier with mandatory PAN cards for most bank accounts and interlinking of Aadhaar and PAN. With the onus shifting to digital payments, it is a new ecosphere post demonetization. Even for cheque payments/transfers there are new guidelines since last year to ensure propreity and combat misuse of fund transfers.
Just FYI, since financial knowledge is important for all :D
https://www.incometax.gov.in/iec/foportal/help/tds-on-cash-withdrawal-us-194n-faq
https://www.business-standard.com/article/finance/understanding-positive-pay-system-necessary-to-encash-cheques-from-august-1-122072600446_1.html
Edited by Amri_IF - 2 years ago