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Restrictions on Cash-Based Transactions of Rs. 2 Lakhs and Above Not Applicable on Credit Cards: Centre Says
July 12, 2017
According to the revenue department, limits imposed on cash dealings of Rs. 2 lakhs or more are not applicable on credit card bill payments, prepaid instruments, and business correspondents in the bank sector.
On April 1, 2017, the Financial Act, 2017 came into effect which banned cash-based transactions worth Rs. 2 lakhs or more. However, there are some exceptions as revealed by the IT department.
The violation of Section 269ST of the IT Act can attract a 100% penalty on the receiver of the cash-based amount over Rs. 2 lakhs.
