Income Tax Act, 2025  ·  Chapter XI — Minimum Alternate Tax  ·  Section 186

Section 186
Mode of undertaking transactions

IT Act 2025 Chapter XI Effective 1 April 2026 Old: 269ST
New Provision
Section 186, IT Act 2025
Replaces (IT Act 1961)
269ST
Chapter
Chapter XI — Minimum Alternate Tax
Effective From
1 April 2026
Statutory Text — Section 186

(1) No person shall receive an amount of ₹ 200000 or more–– (a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, except through— (i) an account payee cheque; or (ii) account payee bank draft; or (iii) electronic clearing system through a bank account; or (iv) any other electronic mode, as may be prescribed. (2) Sub-section (1) shall not apply to— (a) any receipt by Government, any banking company, post office savings bank or co-operative bank; (b) transactions of the nature referred to in section 185; (c) such other persons or class of persons or receipts, as may be notified by the Central Government.

Shahi & Co. — Our Understanding
This section is part of Chapter XI of the Income Tax Act, 2025, effective from 1 April 2026. It carries forward the corresponding provision from the Income Tax Act, 1961 with simplified language and restructured drafting.
Practical Note: For specific guidance on how this provision applies to your situation, consult a qualified Chartered Accountant. The Income Tax Act, 2025 retains the substance of the old law while making it more accessible.
Shahi & Co., Chartered Accountants
Need guidance on Section 186?
Our Direct Tax team advises individuals, businesses, and start-ups on all provisions of the Income Tax Act, 2025. We help you navigate the transition from the old Act with zero disruption to your compliance calendar.
Consult Our Tax Team →
← Previous
Section 185: Mode of taking or accepting certain loans, de
Next →
Section 187: Acceptance of payment through prescribed
← Full IT Act 2025 Index ESOP Taxation Guide TDS under IT Act 2025 NRI Residency Rules
Disclaimer: This is a reproduction of Section 186 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to egazette.gov.in or incometaxindia.gov.in. This does not constitute legal or tax advice.