Income Tax Department says no cash above 2 lakh

Income Tax Department says no cash above 2 lakh
Income Tax Department says no cash above 2 lakh (Photo Credit : Mirchi9)

The Income Tax (IT) department has asked the citizens of India not to carry cash transactions above two lakhs in a move to curb black money and promote digital payment. The department has warned the receiver of penalty of hundred percent.

The department in advertisement said, “Contravention of Section 269ST would entail levy of 100 per cent penalty on receiver of the amount.”

People can write email to ‘blackmoneyinfo@incometax.gov.in’ if they come across any such information. The cash transactions of rupees two lakh or more is banned in India from 1st April 2017 by the government, through the Finance Act 2017.

Earlier it was proposed to ban cash transactions of rupees over three lakh by the Finance Minister Arun Jiatley in the 2017-18 Budget but the limit was lowered to two lakhs by an amendment to the Finance Bill, which was passed in March by the Lok Sabha.

The Income Tax department has said that the restriction is not applicable to any receipt by government, banking company, post office savings bank or co- operative bank.

The digital payment in India has assumed significance post demonetization of old 500 and 1000 currency notes.

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