Penalty of equivalent amount for accepting Rs.2 lakh or more in cash

Penalty of Equivalent Amount for Accepting Rs.2 Lakh or more in Cash

The perception is that the black money transactions are done in cash.  It is possible to prevent circulation of black money to a certain extent. It is the most important benefit of digitalisation.

2 lakhs from the 1st of April 2017 to prevent money laundering. All cash transactions on or above through authorized channels  If not, the central government has declared it illegal as 269 ​​ST in Income Tax Department. The said distinction was brought by adding the department. The relevant sections of the said section indicate how a person may 20 lakhs or more in cash or establishment of individual On the same day, for a single transaction, or from  It should not be taken for any reason.

But the following people have been exempted from this.

1. Govt
2. All banking companies including co-operative banks (under 269 ​​of the Income Tax Act and Post Offices)

It also excludes transactions specified in Sect.  There is 269 ​​ST of Income Tax Act  Government, Banks, Post Office and Co-operative Bank by Department An individual or an organization, movement or company a cash balance of Rs 2 lakh or don’t allowed above 2lakh as cash 1st April 2017. Punishment will be on the person/organization receiving the money. Here is the taxable amount or the tax free amount. Is there any consideration of what agricultural income is? Not sitting.

Section 269 ST deals with money transactions in 3 ways. the first is to say that on the same day a person, institution or entity Cash of Rs.two lakh or more from the person/institution Yes, there is a price to be accepted. This can be explained with an example. One person to another person 1st date Rs.1.5 lakh goods Sold in On the second date, the same trader made another sale of Rs. 1 lakh.  After the transaction on the second date, the said person gave the first person, I have to pay Rs.2lakh. Here, no more than 2 lakh rupees should be given as cash. The fact that it is a 2-day transaction has no relevance here.

The second index is about the size of the transaction. Even if a single transaction worth more than Rs.2 lakh is made, its Amount below Rs 2 lakh can be accepted in cash only. The remaining amount can be paid into the bank account through check, draft or electronically. Here the amount is given in small numbers over several days. No, For example, the operation cost of a patient in a hospital is Rs 3 lakh. He haven’t pay this 3 lakh rupees in cash for the hospital authorities. Can't take it. Less than two lakh rupees in cash and the remaining through check Bank through electronic mode or cash or draft only possible.

Thirdly, it refers to a specific event, if not a specific transaction. It is  a specific transaction or event of 2 lakhs or more in cash, it should not be accepted.  For example, event management for a wedding reception. Event management is handed over with a contract sum of Rs 5 lakh. 2 lakhs to the said company for its preparation is that Only cash can be accepted. Balance amount is accepted only through Cheque/Draft/Electronic/Bank That's enough.

Another example,  1000 rupees each for 300 people who participate in a marriage campaign.  Here the total amount is Rs. 3 lakh, but not from one person only. Therefore, this rule will not apply. However, according to the second clause, it will be a violation of the law, the commentator added. It's busy.  But if someone receives a gift of Rs 2 lakh or more  If Shai accepts it, it is also against the law.