In his budget presented in February, Finance Minister Arun Jaitley had said cash transactions would be capped at three lakhs. The government wants to reduce the limit to two lakhs.
Cash transactions of more than two lakhs will be considered illegal and penalised, the government has proposed today.
In the government’s annual budget presented in February, Finance Minister Arun Jaitley had said cash transactions would be capped at three lakhs. In an amendment to the Income Tax Act, the government has called for reducing the limit to two lakhs starting next month.
The proposal is aimed at curbing black money and pushing the country towards digital transactions.
The penalty will be 100 per cent -anyone who accepts more than 3 lakhs in cash will have to pay a fine equal to the entire amount received.
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