In a bid to check generation of black money, a steep penalty awaits those accepting cash in excess of Rs3 lakh, beginning April 1, to settle any transaction.
In an interview to PTI, Revenue Secretary Hasmukh Adhia said the penalty for doing cash transaction will be steep and the receiver will have to pay an amount equivalent to the cash received.
“Supposing you do a transaction of Rs4 lakh in cash, then the penalty would be Rs4 lakh. If you do a transaction of Rs50 lakh, penalty would be Rs50 lakh,” said Adhia, adding that the penalty will be levied on the receiver.
“So, if someone buys an expensive watch for cash, it is the shopkeeper who will have to pay the tax,” he said.