The income tax department of India today warned people who are dealing in more than 2 Lakhs. It stated that any violation of this cap will involve strict penalty under law.
Also, receiving and paying of more than Rs 20,000 in exchange of some immovable property and paying more than 10,000 rupees in cash is also banned.
“Cash payment prohibited! Contravention may result in levy of penalty! Go cashless. Go clean,” the message stated.
The tax department has also asked the citizens to report against any such violation of the acts pertaining to black money. The complaint could be reported on email@example.com.
The central government has already banned the transactions of worth Rs.2 lakhs or more from April 1, 2017. (Finance Act, 2017). The same had already been issues earlier as well.
The newly presented section 269T in the Income Tax Act bans such cash dealings in a single against any transaction for an individual. The section entails toll of 100 percent penalty on the receiver of the amount. The restrictions, however, are not eligible to any government receipt, post office savings bank or co-operative earlier this year.
This move of banning the transactions above the threshold amount of money was targeted at curbing the black money with the logic behind to discourage cash transactions.
This has to be noted that such proposal was made by Special Investigation Team (SIT) earlier as well, which too was formed to eradicate the black money.