New Delhi: The government on Tuesday proposed a cap of Rs 2 lakh on cash transactions, down from Rs 3 lakh as proposed in the Budget.
In the government’s annual budget presented in February, Finance Minister Arun Jaitley had said cash transactions would be capped at three lakhs.
In an amendment to the Income Tax Act, the government has called for reducing the limit to two lakhs starting next month.
The proposal is aimed at curbing black money and pushing the country towards digital transactions.
The penalty will be 100 per cent -anyone who accepts more than 3 lakhs in cash will have to pay a fine equal to the entire amount received.