Tuesday, June 6, 2017

Income Tax Department Warns Against Cash transaction of Rs. 2 lakh or More

In terms of the sections 269ST & 271DA (which came into effect from 1st April 2017) inserted by the Finance Act 2017 to the Income-tax Act, the Income Tax Department recently  warned the people against carrying out cash transaction of Rs. 2 lakh or more, stating that  the receiver will have to pay an equal amount as penalty. 

The IT department added that the informers can email the department to blackmoneyinfo@incometax.gov.in if they come to know about any such payment. The restriction is not applicable to any receipt by the government, banking company, post office savings bank or co-operative bank. 

The Central Board of Direct Taxes  (CBDT) has clarified that the said cash transaction limit of Rs 2 lakh will not apply to withdrawal from banks, cooperative bank and post offices.

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