With the demonetization of Rs.500 and Rs.1000 notes Modi kept every black money holder Blown away. And now another announcement from his side has come forward that is “100% penalty on above 3 lakhs cash transaction”.
In a proposal to keep check on the generation of black money, a sharp penalty is waiting for those who will accept cash in excess of ₹3 lakh, from April 1, for the settlement of any transaction.
As per the Budget for 2017-18 this ban on cash transaction of more than ₹3 lakh has been offered. As per an interview with PTI, Revenue Secretary Hasmukh Adhia said, “ The penalty for the cash transaction would be strict and the receiver have to pay the amount of money he/she has received in cash”.
“Suppose you do a transaction of ₹4 lakh in cash, in that case the penalty would be the same and that is₹4 lakh. When you do a transaction of ₹50 lakh, penalty would bethe same and it is ₹50 lakh,” he said, adding that the fine will be charged on the person who will recieve the amount.
So, if you buy an expensive watch in cash, and the shopkeeper recives the amount in cash he has to pay a penalty equal to the amount. With demonetization the recent black money got vanished from the market and to stop the future generation to increase their black money this step has been taken.
Mr. Adhia said “the formerly advised law of quoting PAN for any cash transaction above ₹2 lakh stays”.