Lok Sabha Question No. 5698 (UNSTARRED), answered on 2017-04-07
Subject: Ceiling on Cash Transactions
Ministry: FINANCE
Asked by: BHAIRON PRASAD MISHRA, ELUMALAI VELLAIGOUNDER, (ADV.) JOICE GEORGE

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION No. 5698 TO BE ANSWERED ON FRIDAY, THE 7 TH  APRIL, 2017 17, CHAITRA, 1939 (SAKA)

## CEILING ON CASH TRANSACTIONS

## 5698. SHRI BHAIRON PRASAD MISHRA: SHRI V. ELUMALAI: ADV. JOICE GEORGE:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  is  aware  that  Rs.  3  lakh  ceiling  on  cash  transactions proposed in the budget 2017-18 has been revised to Rs. 2 lakh;
- (b) if so, the details thereof and the reasons for the sudden changes affected;
- (c) whether the Government has imposed a fine equivalent to the amount of transaction for violating the aforesaid norms; and
- (d) if so, the details thereof and the reasons therefor?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a)& (b) Yes Madam, the ceiling on cash transactions has been revised to rupees two Lakh through Finance Act, 2017. The provisions of section 269ST inter-alia restrict acceptance of cash of two lakh rupees or more in the circumstances specified therein, through modes other than an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account. In view of the Government's thrust on promoting the digital economy  and  the  need  to  curb  black  money,  which  is  generally  transacted  in  cash,  the proposed ceiling of rupees three lakh proposed in the Finance Bill, 2017 has been revised to rupees two lakh.

(c)&  (d)  Yes  Madam,  in  order  to  enforce  restriction  on  cash  transactions,  a  new  section 271DA has been inserted in the Income-tax Act, 1961 to provide that if a person contravenes the  provisions  of  section  269ST,  he  shall  be  liable  to  pay  penalty  of  a  sum  equal  to  the amount of such receipt.

\_\_\_\_\_\_

## LOK SABHA

Un-starred Question No. 5698

To be answered on: 07.04.2017

'Ceiling on Cash Transactions'

## Question

5698. SHRI BHAIRON PRASAD MISHRA:  SHRI  V.  ELUMALAI:  ADV. JOICE GEORGE:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  is aware  that  Rs.  3  lakh  ceiling  on cash transactions proposed in the budget  2017-18  has  been  revised to Rs. 2 lakh;

(b)  if  so,  the  details  thereof  and the reasons for the sudden changes affected;

(c)  whether  the  Government  has imposed  a  fine  equivalent  to  the amount of transaction for violating the aforesaid norms; and (d)  if  so,  the  details  thereof  and the reasons therefor?

Answer

(a)& (b) Yes Madam, the ceiling on cash transactions  has  been  revised  to  rupees  two  Lakh through Finance Act, 2017. The provisions of section 269ST  inter-alia  restrict  acceptance  of  cash  of  two lakh rupees or more in the circumstances specified therein,  through  modes  other  than  an  account payee cheque or an account payee bank draft or use  of  electronic  clearing  system  through  a  bank account.  In  view  of  the  Government's  thrust  on promoting  the  digital  economy  and  the  need  to curb black money, which is generally transacted in cash,  the  proposed  ceiling  of  rupees  three  lakh proposed in the Finance Bill, 2017 has been revised to rupees two lakh.

(c)& (d) Yes Madam, in order to enforce restriction on  cash  transactions,  a  new  section  271DA  has been  inserted in the Income-tax Act, 1961 to provide that if a person contravenes the provisions of section 269ST, he shall be liable to pay penalty of a sum equal to the amount of such receipt.