New Delhi: The Income Tax Department has warned Indian citizens about the cash usage in its latest advertisement titled ‘Clean Transactions, Cleaner Economy’. Through the advertisement, the IT Department seeks to have transparency in tax practice. The advertisement specifies a list of dos and don’ts for taxpayers in terms of receiving and spending cash either for household or business purpose. Such stringent norms are being followed to keep a check on the circulation of black money.
Besides, the IT department declared its decision to impose penalties on those who break the rules. Further, taxpayers have been advised to report instances of black money.
Following are the four key factors mentioned in the advertisement which a taxpayer must keep in mind:
1) Indian citizens are barred from receiving cash amounting to Rs 2 lakh or more in aggregate from one person in one day or for more transactions relating to a single event or an occasion.
2) Taxpayers should not receive or repay cash worth Rs 20,000 or more for transfer of immovable properties.
3) Citizens are prohibited from paying over Rs 10,000 in cash as expenditure in their business undertaking.
4) Lastly, one should not donate more than Rs 2,000 in cash to a registered trust or political party.
According to the IT department, “Any information regarding such violations or black money or benami transactions can be given to the jurisdictional Principal Commissioner of Income Tax and can also be emailed on email@example.com.” In case a person is caught violating any of these rules, the IT department would levy penalties or disallow any deductions claimed.
To fight black money, Prime Minister Narendra Modi on November 8, 2016, had announced demonetisation of Rs 500 and Rs 1,000 notes. The Centre then introduced new Rs 500 and Rs 2,000 notes.