Section-186 : Mode of undertaking transactions

1. Section-186 as per act

1. No person shall receive two lakh rupees or more––
   
   
   1. in aggregate from a person in a day; or
   2. in respect of a single transaction; or
   3. in respect of transactions relating to one event or occasion from a person,
      
      except through—
      
      
      1. an account payee cheque;
      2. account payee bank draft;
      3. electronic clearing system through a bank account; or
      4. any other electronic mode, as prescribed.
2. Sub-section (1) shall not apply to—
   
   
   1. any receipt by Government, any banking company, post office savings bank, or co-operative bank;
   2. transactions of the nature referred to in section 185;
   3. such other persons or class of persons or receipts, as notified by the Central Government.

2. Help and useful links for Section-186

1. Income Tax Help Center
2. Income Tax Act 2025 Home
3. High value transaction limits for Income Tax Compliance
4. Allowable Cash Transactions under Income Tax
5. Income Tax Penalties: What and When?