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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 law.
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".
"Cash payment prohibited! Contravention may result in levy of penalty! Go cashless. Go clean," the message stated.
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 blackmoneyinfo@incometax.Gov.In.
The department, in the past, has issued similar public advertisements.
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.
The restriction, however, is not applicable to any receipt by government, banking company, post office savings bank or co-operative bank, it had said.
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.