The Union Budget 2017-2018 had received mixed opinions from the people of India. Someone would say it’s benefiting the middle-class people and some sections are opposing it.
However, among the most discussed things, Govt decision of barring cash transactions above 3 lakh stood in the first place.
Finance minister says that this rule is devised with the intention of making India, a cashless country and also to stop the generation of black money. If anyone breaching the new rule imposed by the govt has to pay 100% penalty.
From 1st April those who will accept cash over Rs 3 lakh have to pay 100% percent penalty on the excess amount received.
Revenue Secretary Hasmukh Adhia in an interview explained that “Supposing you do a transaction of Rs 4 lakh in cash, then the penalty would be Rs 4 lakh. If you do a transaction of Rs 50 lakh, the penalty would be Rs 50 lakh.”
He added that ”if someone buys an expensive watch for cash, it is the shopkeeper who will have to pay the tax.
Adhia stated that the primary motive of this provision is to deter people from doing large cash transactions. The government would have an eye on every large transaction done, and respective measures will be taken to curb them from roots.
So from 1st of April, this new rule will be in force, and black money holders, others who have unaccounted money will be facing the heat. So no there will be no scope for buying costly and luxury things chance with illegal money.
The previous rule of quoting PAN details for Transactions more than Rs.2 Lakh will also be active.However, the government, any banking company, post office savings bank or co-operative bank will be exempted from these restrictions.
It’s known that the Chief Ministers panel lead by AP CM Chandrababu Naidu recommended a tax on payments of over Rs 50,000. The committee was constituted by the PM said that their proposal would encourage people using digital money rather than physical cash.