Income Tax Department warns against cash dealings above Rs 2 lakh
06 Nov 2017
The Income Tax Department today warned people against cash
dealings of Rs 2 lakh and more, saying any violation of this cap will
invite strict penalty under law.
In a public message, the department said, "accepting Rs 2 lakh or more
in aggregate from a single person in a day for one or more transactions relating to one event or occasion is prohibited".
"Similarly, receiving or repaying Rs 20,000 or more in cash for
transfer of immovable property and paying more than Rs 10,000 in cash
relating to expenditure of business or profession is also banned."
"Cash payment prohibited! Contravention may result in levy of penalty! Go cashless. Go clean," the message stated.
The tax department has also asked the public to report such violations
or those pertaining to black money to their jurisdictional principal
commissioner of I-T department or email the same to
The department, in the past, has issued similar public advertisements.
The central government had banned cash transactions of Rs 2 lakh or more from April 1, 2017, through the Finance Act 2017.
The newly inserted section 269ST in the Income Tax Act
bans such cash dealings on a single day, in respect of a single
transaction or transactions relating to one event or occasion from an
"Contravention of section 269ST would entail
levy of 100 per cent penalty on receiver of the amount," the Income Tax
Department had said in a public advertisement in leading dailies early
The restriction, however, is not applicable to
any receipt by government, banking company, post office savings bank or
co-operative bank, it had said.
The move to ban cash
transactions above a threshold was aimed at curbing black money by
discouraging cash transactions and promoting digital economy.
Such a proposal was also made by the Special Investigation Team (SIT),
which was formed to eradicate the scourge of black money, to the Centre