From April 1, cash transaction beyond Rs 2 lakh may be charged with a heavy penalty. In a bill proposed in Parliament, the government has sought to bring down the limit of cash transaction from Rs 3 Lakhs to Rs 2 Lakhs.
"Govt has proposed that limit of Rs 3 lakhs for cash transaction beyond which it is illegal, be reduced to Rs 2 lakhs," Hasmukh Adhia, Revenue Secretary told media on Tuesday.
The penalty for violating this is a fine equivalent to the amount of transaction, Adhia added.
Cash transaction limit up to Rs 3 Lakhs was first introduced in Union Budget 2017-18.