The government has banned cash transactions of Rs 2 lakh or more from April 1, 2017, through the Finance Act 2017.The newly inserted section 269ST in the Income Tax Act bans such cash dealings on a single day, in respect of a single transaction or transactions relating to one event or occasion from an individual. The restriction is not applicable to any receipt by government, banking company, post office savings bank or co-operative bank, the tax department said.
The receiver of the amount will have to cough up an equal amount as penalty.
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