The Income Tax Department once again warned people against cash dealings of 2 lakh rupees and more, saying any violation of this cap will invite strict penalty under law. In a public message yesterday, the department said accepting 2 lakh rupees or more in aggregate from a single person in a day for one or more transactions relating to one event or occasion is prohibited. The department in the past has issued similar public advertisements.
Similarly, receiving or repaying 20,000 rupees or more in cash for transfer of immovable property and paying more than 10,000 rupees in cash relating to expenditure of business or profession is also banned. The message stated, cash payment prohibited, contravention may result in levy of penalty, go cashless. go clean.
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 firstname.lastname@example.org. The central government had banned cash transactions of 2 lakh rupees or more from April 1, 2017, through the Finance Act 2017.