Finance Bill 2017: Govt proposes lower cap on cash transactions at Rs 2 lakh
The earlier limit proposed in the Budget was Rs 3 lakh.
In a bid to make the country go digital and cashless, the government has passed a new proposal to lower the curb on cash transactions.
The government, in the Finance Bill 2017, has proposed to lower the limit on cash transactions to Rs 2 lakh from the Rs 3 lakh proposed in the Budget earlier this year.
At the time, Finance Minister Arun Jaitley, while announcing the curb on cash transactions had said that anyone found engaging in transactions above Rs 3 lakh would be penalised with an amount equal to the value of the transaction.
Tweeting about the new proposal, Revenue Secretary Hasmukh Adhia said
This means, cash transactions above the limit of Rs 2 lakh would be deemed illegal and a fine equivalent to the amount of transaction would be levied.