Act 2025Sections 185–189

Chapter XII of the Income-tax Act, 2025 — Mode of Payment in Certain Cases etc.

Five sections on how money must move — the cash-transaction code.

What this chapter does

Sections 185 to 189 govern the mode of taking or accepting loans, deposits and specified sums, the mode of undertaking transactions, the obligation to accept payment through prescribed electronic modes, and the mode of repayment. These are the successors to sections 269SS, 269ST, 269SU and 269T of the 1961 Act. Nothing here computes income; the whole chapter works through the penalties in Chapter xxi.

What to watch

The penalty, not the section, is the operative consequence — sections 450 to 453 carry it.
A transaction can be genuine, fully disclosed and still penalised, because the objection is to the mode of payment.

The sections in this chapter

5 sections, in the order the Act runs them. 5 have a page of their own.

What this page does not tell you. This page gives the shape of the chapter and the Act's own heading for every section in it. It does not reproduce the text of any section, and a heading is not the provision. Where a section is marked read in full, that page carries the working; everywhere else, read the section itself before relying on anything here.