100% Penalty for Ac­cept­ing over 3 Lakh in Cash

The Economic Times - - Economy: Macro, Micro & More -

New Delhi: To check gen­er­a­tion of black money, a steep penalty awaits those ac­cept­ing cash in ex­cess of .₹ 3 lakh, be­gin­ning April 1, to set­tle any trans­ac­tion. A ban on cash trans­ac­tion of more than .₹ 3 lakh has been pro­posed in the Bud­get. Rev­enue Sec­re­tary Hasmukh Ad­hia said the penalty for do­ing cash trans­ac­tion will be steep and the re­ceiver will have to pay an amount equiv­a­lent to the cash re­ceived. “Sup­pos­ing you do a trans­ac­tion of .₹ 4 lakh in cash, then the penalty would be .₹ 4 lakh. If you do a trans­ac­tion of .₹ 50 lakh, penalty would be .₹ 50 lakh," he said, adding that the penalty will be levied on the re­ceiver. So, if some­one buys an ex­pen­sive watch for cash, it is the shop­keeper who will have to pay the tax, he said, adding that the pro­vi­sion is to de­ter peo­ple from do­ing large cash trans­ac­tions. —PTI

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