To check generation of black money, a steep penalty awaits those accepting cash in excess of Rs.3 lakh, beginning April 1, to settle any transaction. A ban on cash transaction of more than Rs.3 lakh has been proposed in the Budget.
Revenue Secretary Hasmukh Adhia said the penalty for doing cash transaction will be steep and the receiver will have to pay an amount equivalent to the cash received. “Supposing you do a transaction of Rs.4 lakh in cash, then the penalty would Rs.4 lakh. If you do a transaction of Rs.50 lakh, penalty would be Rs.50 lakh,“ he said, adding that the penalty will be levied on the receiver. So, if someone buys an expensive watch for cash, it is the shopkeeper who will have to pay the tax, he said, adding that the provision is to deter people from doing large cash transactions.
Revenue Secretary Hasmukh Adhia said the penalty for doing cash transaction will be steep and the receiver will have to pay an amount equivalent to the cash received. “Supposing you do a transaction of Rs.4 lakh in cash, then the penalty would Rs.4 lakh. If you do a transaction of Rs.50 lakh, penalty would be Rs.50 lakh,“ he said, adding that the penalty will be levied on the receiver. So, if someone buys an expensive watch for cash, it is the shopkeeper who will have to pay the tax, he said, adding that the provision is to deter people from doing large cash transactions.
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