New Delhi, March 21: Hasmukh Adhia, the revenue secretary, on Tuesday, regarding putting the cap on Rs 3 lakhs cash transactions clarified that government has proposed that limit of Rs 3 lakhs for cash transaction beyond which it is illegal, should be reduced to Rs 2 lakhs. The centre is doing this to tighten the screws of those involved in black money practice. Adhia further stated that the one who violates this rule will be slapped with a fine, “The penalty for violating this is a fine equivalent to the amount of transaction.”
Earlier, in the beginning of February, in a bid to check generation of black money, the government came out and said that penalty will arrive at the doorsteps of those accepting cash in excess of Rs 3 lakh, beginning April 1, to settle any transaction. A ban on cash transaction of more than Rs 3 lakh has been proposed in the Budget for 2017-18. In an interview to PTI, Revenue Secretary Hasmukh Adhia had said the penalty for doing cash transaction will be steep and the receiver will have to pay an amount equivalent to the cash received.
With demonetisation, the Narendra Modi-led government tried to curb black money and with this it aims to further intensify the act.
The government, Adhia said, will track all large cash transactions, and also curb the avenues of conspicuous consumption through cash. People with large sum of unaccounted money usually spend it on holidaying or buying luxury items like cars, watches and jewellery. The new cash curbs will mean that such spending avenues are curtailed, disincentivising people from generating black money. Adhia said that the previously notified rule of quoting PAN for any cash transaction above Rs 2 lakh stays.
(With Agency Inputs)