The Income Tax Department today 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@example.com if they know of any such transaction.
http://mt.ndtv.com/cms/belly-box-embed.txtThe government banned cash transactions of Rs 2 lakh or more on April 1 through the Finance Act, 2017. The new Section 269ST in the Income Tax Act bans such cash transactions.
"Contravention of Section 269ST would entail levy of 100 per cent penalty on receiver of the amount," the I-T Department said in advertisements.
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.
The I-T Department started the email firstname.lastname@example.org in December last year after demonetisation of high-value Rs 500 and Rs 1,000 rupee notes. The government then launched the tax amnesty scheme Pradhan Mantri Garib Kalyan Yojana or PMGKY for people holding unaccounted cash to declare their wealth and pay 50 per cent tax and penalty.