Taxpayers alert! Avoid these cash transactions, or else penalty will be levied; even ITR filing claims may be rejected

The Income Tax Department has been issuing various guidelines in regards to have a transparent tax practices. Interestingly, once again, the department has issued a new advertisement, where it has warned firmly to Indian citizens about usage of cash. The department has released dos and donts for taxpayers, when it comes to receiving or paying cash either be for homes or business. Reason behind such stringent norms is a practice to take hold of black money which has been among major agendas of Prime Minister Narendra Modi government since
 demonetisation drive.

Apart from warning on cash transaction, the department has also stated about penalties for those who break the rules. Further, it has also asked taxpayers, to report any information in regards to black money practices. 

An advertisement titled ‘Clean Transactions, Cleaner Economy’ was released the department. 

Under which, four key factors a citizen must remember while holding a cash in hand. 

Firstly, one must not accept cash of up to Rs 2 lakh or more in aggregate from a single person in a day or for more transactions relating to one event or occasion.

Secondly, do not receive or repay Rs 20,000 or more in cash for transfer of immovable properties. 

Thirdly, do not pay more than Rs 10,000 in cash relating to expenditure of business or profession. 

Finally, do not donate in excess of Rs 2,000 in cash to a registered trust or political party. 

If above mentioned rules broken, the department mentions that, penalties may be levied or deductions claimed can be disallowed in case of violations.

In case of black money, the department says, “Any information regarding such violations or black money or benami transactions can be given to the jurisdictional Principal Commissioner of Income Tax and can also be emailed on blackmoneyinfo@incometax.gov.in.”

Hence, if you do not want to fall under blacklist of IT department, then make sure you stay alert and vigilant in the cash you hold.