Section 186
Section 186: mode of undertaking transactions - the ₹2,00,000 cash receipt limit
Section 186 is the general restriction on receiving large amounts in cash: no one may receive ₹2,00,000 or more in cash, whether in aggregate from a person in a single day, for a single transaction, or for transactions relating to one event or occasion - it must go through an account payee cheque, account payee bank draft, ECS, or another prescribed electronic mode.
The core restriction
No person shall receive an amount of ₹2,00,000 or more, except through an account payee cheque, account payee bank draft, electronic clearing system through a bank account, or any other prescribed electronic mode, where the amount is received:
- in aggregate from a person in a day; or
- in respect of a single transaction; or
- in respect of transactions relating to one event or occasion from a person.
Exceptions
The restriction does not apply to:
- any receipt by the Government, any banking company, post office savings bank, or co-operative bank;
- transactions of the nature referred to in Section 185 (loans, deposits and specified sums, which are separately regulated);
- such other persons or class of persons or receipts, as may be notified by the Central Government.
Frequently asked questions
What is the cash receipt limit under Section 186?
₹2,00,000, whether that amount is received in aggregate from one person in a single day, for a single transaction, or for transactions relating to a single event or occasion from a person.
Are banks and the Government exempt from the Section 186 cash receipt limit?
Yes - receipts by the Government, any banking company, post office savings bank, or co-operative bank are excluded, as are transactions already covered by Section 185 (loans, deposits and specified sums).
Related sections
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Check your cash transaction compliance with our tax teamLast updated 9 September 2026