The Income Tax Department on Friday said that persons carrying out cash transactions of Rs. 2 lakh or more would be charged with 100% penalty.
It said that Section 269ST has been inserted in the Income Tax Act, 1961 with effect from April 01, 2017 – which restricts acceptance of cash of Rs 2 lakh or more by any person.
The department, in its official website send out a message that “Contravention of Section 269ST would entail levy of 100 per cent penalty on receiver of the amount.”
The restriction on cash receipt of Rs 2 lakh or more is not applicable to any receipt by the Government, Banking company, Post Office Savings Bank or Co-operative Bank.
Finance Minister Arun Jaitley, while presenting the Union Budget 2017-18, proposed a ban on cash transaction of over Rs 3 lakh with effect from April 01. While passing the Bill, the Lok Sabha amended the provision and restricted the limit to 2 Lakh rupees.
