IT department cracks whip on cash dealings above Rs. 2 lakh

New Delhi, June 2: The central government is not leaving any opportunity to crack the whip on Black Money.

The Income Tax department today has warned people who deal in a cash transaction of Rs 2 lakh or above. The department said that the receiver of the amount must pay an equal amount as penalty.

Tax officers have sought peoples cooperation by asking them to tip-off the tax department by sending an email to blackmoneyinfo@incometax.gov.in regarding the cash dealings above the limit.

The central government has banned cash transactions of Rs 2 lakh or more from April 1, 2017, through the Finance Act 2017. Earlier in 2017 Budget, Finance Minister Arun Jaitley had proposed to ban cash transaction of over Rs 3 lakh. This limit was lowered to Rs 2 lakh by an amendment to the Finance Bill.

The officials have clarified that the restriction is not applicable to any receipt by the government, banking company, post office savings bank or co- operative bank.

The government hopes that the move to ban cash transaction above a threshold will curb black money and promote digital economy.

The to ban cash dealings above a threshold was suggested by the SIT formed by the Modi government. Finally, let us hope that people help the It department by sending emails so that Black money is curbed in India.