Beware No Cash Transactions over 2 Lakhs

Union Government has banned the Cash Transactions more than 2 Lakhs from April 1st and now is gearing up to conduct raids.IT department has advised people having knowledge of such dealings to tip-off the tax department by sending an email to ‘blackmoneyinfo@incometax.gov.in’.

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If caught, the receiver has to cough up an equal amount as a penalty, according to the new rules. Earlier, in the budget, a ban on cash transactions over 3 Lakhs was proposed but then the limit was lowered to 2 Lakhs as an amendment to the Finance Bill, which was passed by the Lok Sabha in March.

The move is to discourage cash transactions so as to curb black money and promote digital economy which will mean that all the transactions are on the radar of the Income Tax Department when needed. The aim is to bring as many as people as possible into Tax net.