New Delhi: In a bid to check generation of black money, a steep penalty awaits those accepting cash in excess of Rs 3 lakh, beginning April 1, to settle any transaction.
The penalty for doing cash transaction will be steep and the receiver will have to pay an amount equivalent to the cash received said Hasmukh Adhia, revenue secretary on Sunday.
Supposing one person does a transaction of Rs 4 lakh in cash, and then the penalty would be Rs 4 lakh. If do a transaction of Rs 50 lakh, penalty would be Rs 50 lakh,” he added.
Finance Minister Arun Jaitley had in his Budget for 2017-18 proposed to insert Section 269ST in the Income Tax Act to state that “no person shall receive an amount of Rs 3 lakh or more by way of cash in aggregate from a person in a day; in respect of a single transaction; or in respect of transactions relating to one event or occasion from a person”.
However, the restrictions will not apply to the government, any banking company, post office savings bank or co-operative bank.