Government Seeks To Reduce Cash Transaction Limit To Rs 2 Lakh In Finance Bill Amendment
A penalty of equal amount would be levied in case of violation of the provision, says Revenue Secretary.
Cash transactions above Rs 2 lakh will attract a penalty once the Finance Bill gets the president’s nod.
The government on Tuesday moved a fresh proposal to cap cash transactions at Rs 2 lakh instead of Rs 3 lakh as proposed by the Union Budget 2017-18, as it introduced as many as 40 amendments to the Bill in an 'unprecedented move'. The Finance Bill was taken up for consideration in the Lok Sabha.
The penalty for violation of the provision will be equivalent to the transaction amount, according to a tweet by Revenue Secretary Hasmukh Adhia after the amendment was moved.
Finance Minister Arun Jaitley, while presenting the Union Budget 2017-18 on February 1, had proposed the cap on cash transactions at Rs 3 lakh with effect from April 1. A cap on cash transactions had been proposed by the Supreme Court-constituted Special Investigation Team (SIT) on black money.