The Central Board of Direct Taxes ( CBDT ), in a bid to promote cashless transactions, has issued an advisory on its official website regarding cash transactions over and above the prescribed limits specified under the law.
An advisory issued by the income tax department on its official website regarding cash transactions over and above the prescribed limits specified under the law. The advisory issued by the Board remind the taxpayers to not accept cash of two lakh or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion. One of the major step introduced by the Government after the demonetization was to restrict cash transaction above Rs. 2 lakh rupees.
The advisory said not to accept cash of Rs. 2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion. It further bars receiving or repaying Rs. 20,000 or more in cash for transfer of Immovable Property.
It also restricted payment of more than Rs. 10,000 in cash relating to the expenditure of business/profession.
Further, a donation in excess of Rs. 2,000 cannot be made in cash to a registered trust/political party.
“Penalty may be levied/deductions claimed can be disallowed in case of violations Any information regarding such violations or Black Money or Benami transactions can be given to the jurisdictional Principal Commissioner of Income Tax and can also be emailed on blackmoneyinfo@incometax.gov.in,” it said.
Under the Finance Act, 2017, the amounts in excess of Rs. 20,000 or more shall be received or repaid in cash for transfer of Immovable Property and amount more than Rs. 10,000/- in cash relating to the expenditure of business/profession was also banned. Further, the amount in excess of Rs. 2,000/- in cash cannot be donated to a registered trust /political party.
The department further reminded that the contravention may result in the levy of tax/ penalty.
