§ 186
Chapter XII
Mode of undertaking transactions
Income-tax Act, 2025
Business owners must receive payments of ₹200,000 or more through approved methods. These include account payee cheques, bank drafts, electronic clearing systems, or other prescribed electronic modes. Exceptions apply to certain entities like government, banks, and co-operative banks.
- Threshold: ₹200,000
📜 Official text of the section +
186. (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 prescribed29a.
(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.
Acceptance of payment through prescribed electronic modes.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.