The income tax department has recently warned taxpayers involved in violating the cash transaction limit of Rs. 2 lakh or more and said that the receiver of the amount will penalized with an equal amount as penatly.
The income tax department has also advised the common people having knowledge the such violating dealings to inform the department by sending an email to blackmoneyinfo@incometax.gov.in the government through Finance Act, 2017 banned cash transactions of Rs. 2 lakhs or more from 1st April, 2017.
The secion 269ST has been inserted in the Income Tax Act which prohibits the cash transactions of Rs. 2 lakh or more in a single day, the contravention of this section will attract a penalty of an amount equal to 100% of the cash involved on the part of the receiver.
Initially this limit was set at Rs. 3 lakhs but and then reduced to Rs. 2 lakhs through an amendment made to Finance Bill in March. The exception to this section has been given to the receipt by any government department, banking company, post office saving bank and the co-operative bank.
The step of limiting the cash transactions to a certain limit was introduced to reduce black money in the economy and promoting digital economy. Post demonetization of Rs. 1000 and 500 notes the income tax department launched an email address blackmoneyinfo@incometax.gov.in for receiving any kind of information related to the black money.
Through this mail the Income Tax Department urged the common people to inform any kind of black money dealing by sending an email to the above mentioned email address.