A ban on cash transaction of more than Rs 3 lakh has been proposed in the Budget for 2017-18. Yes, we know why this is being done:Revenue Secretary Hasmukh Adhia said in an interview on Sunday: “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, penalty would be Rs 50 lakh". We would like that the cash economy ends up being taxed. Thus we want to have interaction between the cash market and the banked and taxed market.

Source: Forbes February 05, 2017 09:34 UTC