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On 20.11.2026 Ameesha, an RBI officer acting in her personal capacity, sells her own second-hand car to…

Section 186 of the Income-tax Act, 2025 (formerly section 269ST of the Income-tax Act, 1961) prohibits receiving two lakh rupees or more in cash for a single transaction.…

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On 20.11.2026 Ameesha, an RBI officer acting in her personal capacity, sells her own second-hand car to Bakshi, an RBI clerk acting personally, for Rs. 2 lakh. The whole price is to be received in cash in Rs. 2,000 notes; there is no debt set-off and no statutory or notified exception applies. Which statement about section 186 of the Income-tax Act, 2025 is correct?

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Correct answer D

Section 186 of the Income-tax Act, 2025 (formerly section 269ST of the Income-tax Act, 1961) prohibits receiving two lakh rupees or more in cash for a single transaction. Personal employment by a bank does not exempt an individual seller, and the denomination of the notes is irrelevant. Splitting the price across different days does not avoid the single-transaction restriction.

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