business

Govt planning to impose 100% penalty on accepting cash over Rs 2 lakh

The government today proposed to lower cap for cash transactions to Rs 2 lakh from April 1, make biometric identifier Aadhaar mandatory for filing tax returns and allow cheque-only contributions to electoral trusts as part of the tirade against blackmoney.

Finance Minister Arun Jaitley moved an “unprecedented” 40 amendments to his seven-week old Finance Bill 2017, which were strongly opposed by opposition parties led by the RSP, the TMC and the BJD.

In a fresh measure that could impact the real estate, jewellery and the high-end luxury market, the government has proposed to lower the limit of cash transactions to Rs 2 lakh from Finance Minister Arun Jaitley’s Budget proposal to cap it at Rs 3 lakh.

“Government has proposed that limit of Rs 3 lakhs for cash transaction beyond which it is illegal, be reduced to Rs 2 lakhs,” Revenue Secretary Hasmukh Adhia said in a tweet today.
Notably, the government had in its Budget presentation this year, mooted a cap of Rs 3 lakh on cash transactions, in line with the proposals of the Supreme Court-constituted Special Investigation Team (SIT) on black money.

The government, however, has decided against implementing the SIT’s recommendations of capping cash holdings for companies and individuals at Rs 15 lakh.

The move is seen as a part of the Narendra Modi-led government’s promise of clamping down on black money.

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