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Cash payment prohibited: Taxmen warn against cash dealings above Rs 2 lakh

Receiving or repaying Rs 20,000 or more in cash for transfer of immovable property and paying more than Rs 10,000 in cash related to expenditure of business or profession is also banned

Press Trust of India  |  New Delhi 

100, hundred, rupees, Rs, note, cash

The income-department on Monday warned people against dealings of Rs 2 lakh and more, saying any violation of this cap will invite strict penalty under

In a public message, the department said "accepting Rs 2 lakh or more in aggregate from a single person in a day for one or more transactions related to one event or occasion is prohibited".


"Similarly, receiving or repaying Rs 20,000 or more in for transfer of immovable property and paying more than Rs 10,000 in related to expenditure of business or profession is also banned.

"payment prohibited! Contravention may result in levy of penalty! Go cashless. Go clean," the message stated.

The department has also asked the public to report such violations or those pertaining to to their jurisdictional principal commissioner of I-T department or email the same to blackmoneyinfo@incometax.Gov.In.

The department, in the past, has issued similar public advertisements.

The central had banned transactions of Rs 2 lakh or more from April 1, 2017, through the Finance Act 2017.

The newly inserted section 269ST in the Act bans such dealings on a single day, in respect of a single transaction or transactions relating to one event or occasion from an individual.

"Contravention of section 269ST would entail levy of 100 per cent penalty on receiver of the amount," the Department had said in a public advertisement in leading dailies early this year.

The restriction, however, is not applicable to any receipt by government, banking company, post office savings bank or co-operative bank, it had said.

The move to ban transactions above a threshold was aimed at curbing by discouraging transactions and promoting digital economy.

Such a 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.

First Published: Tue, August 29 2017. 09:59 IST
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