New Delhi: The Income Tax (IT) Department on Friday warned people against carrying out cash transaction of Rs 2 lakh or more, saying the receiver will have to pay an equal amount as penalty.
The I-T department said informers can email the department to [email protected] if they know of any such transaction.
The government banned cash transactions of Rs 2 lakh or more on April 1 through the Finance Act, 2017.
In the 2017-18 union budget, Finance Minister Arun Jaitley proposed to ban cash transaction of over Rs 3 lakh. This limit was lowered to Rs 2 lakh as an amendment to the Finance Bill, passed by the Lok Sabha in March.
The restriction is not applicable to any receipt by the government, banking company, post office savings bank or co-operative bank, the I-T Department said. The move to ban cash transaction above a threshold was aimed at curbing black money and promoting digital transactions.