Health insurance to donations: Don't use cash for these transactions

The government has proposed to lower the cash transaction limit to Rs 2 lakh from the Rs 3 lakh announced in the Budget earlier. For cash transactions above that limit, the receiver will need to pay a penalty equivalent to the amount of transaction. There are no exceptions to this. You cannot gift cash to close relatives (children, parents and spouse) above Rs 2 lakh and even on the occasion of marriage, you cannot accept a higher amount of cash as a gift. At present, there are few other areas which have either a cap on cash transaction or a complete ban. Here are some of those transactions and the penalty you may attract for flouting the rules.