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100 Percent Penalty for Cash Transactions above 2 Lakhs

Income Tax India
Income Tax Department has clarified that the daily cash transactions above Rs. 2 lakh will attract an equal amount of penalty. Transactions with Banks, Post Offices and Cooperative Societies have been barred from this rule.
Income Tax Department of Government of India has warned the general public of dire consequences if the daily cash transactions cross Rs. 2 lakhs in their bank accounts. 100 percent penalty will be imposed on the account holders concerned if the rule is violated by anybody.

In a move to curb black money, the Government of India has placed a ceiling of Rs. 2 lakh on cash transactions. The Government has actually proposed the ceiling of Rs. 3 lakh in Budget 2017-18.

The Income Tax Department has announced some exemptions to the above rule announced in the Finance Bill, 2017. The Rs. 2 lakhs cash transaction ceiling will not be applicable on withdrawals from bank, cooperative bank or a post office savings account.

The penalty for violating the daily cash transaction limit is a fine equivalent to the amount of transaction. An amendment to the Budget announcement has been made in the Finance Bill, 2017. The Bill was also approved by the Parliament.

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