Supreme Court: Courts, Registrars Must Report Cash Payments Above ₹2 Lakh To Tax Department

The Supreme Court has held that if any suit involves cash payments of ₹2 lakh or more, it must inform the local Income Tax Department. Similarly, sub-registrars must report such payments during property registration.

This ensures compliance with Section 269ST of the Income Tax Act, aimed at curbing black money.

The ruling came while dismissing a land dispute where the buyer claimed to have paid ₹75 lakh in cash without the owner's involvement. The Court also said that if officials fail to report such cases, it should be brought to the Chief Secretary’s attention for strict action.