Receive cash above Rs 3 lakh, pay equal amount as penalty

New Delhi: Speaking on ban on cash transaction of more than Rs 3 lakh which has been proposed in the Budget for 2017-18, Revenue Secretary Hasmukh Adhia said the penalty for doing cash transaction beyond Rs 3 lakh will be steep and the receiver(seller in deal) will have to pay an amount equivalent to the cash received as penalty from 1st April.

Finance Minister Arun Jaitley had in his budget speech early this month had stated: The Special Investigation Team (SIT) set up by the Government for black money has suggested that no transaction above Rs 3 lakh should be permitted in cash. The Government has decided to accept this proposal. Suitable amendment to the Income-tax Act is proposed in the Finance Bill for enforcing this decision. To promote cashless transactions, I propose to exempt BCD, Excise/CV duty and SAD on miniaturised POS card reader for m-POS, micro ATM standards version 1.5.1, Finger Print Readers/Scanners and Iris Scanners. Simultaneously, I also propose to exempt parts and components for manufacture of such devices, so as to encourage domestic manufacturing of these devices.