An Important Note From Income Tax Dept For All Those Who Involve In More Than Rs 2 Lakhs Transactions
After Prime Minister Narendra Modi’s landmark decision on demonetization, Indian govt has undergone a plethora of measures in a bid to curb the black money and ace the economy smoothly, though the instant outcomes are barely visible, it is believed that there are benefits in long-run.
Patting the deed, the Central has come up many other takes sequentially backing the demonetization. Back in April of 2017, it all started with the Finance Act of 2017 following which the Income Tax Department on Monday warned people against cash dealings of Rs. 2 lakh and more, saying any violation of this cap will invite strict penalty under the respective law.
Addressing the same, the department in its public notice 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 the expenditure of business or profession is also banned. Cash payment prohibited! Contravention may result in levy of penalty! Go cashless. Go clean,” the message included.
To put an eye on the invisible sides, the Dept has urged the public to report such violations or those pertaining to black money to their jurisdictional principal commissioner of I-T department, mentioned an email id ‘[email protected]’.
The Finance Act 2017 which came into action in April by the central government had banned cash transactions of Rs. 2 lakh or more. While 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 individual.
Earlier this year, the Income Tax Department had said in a public advertisement, “Contravention of section 269ST would entail levy of 100 per cent penalty on the receiver of the amount.”
Despite the common terms, the restriction, however, is not applicable to any receipt by the 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.
A similar kind of proposal was also made by the Special Investigation Team (SIT), which was formed to eradicate the scourge of black money, to the Centre last year.