No Cash Transaction above Rs 3 lakh from April 1; Governmnet give a push to Digital Economy and weed-out corruption and black money

In a bid to give a push to Digital Economy and weed-out corruption and black money, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley in his Budget Speech today said that the Government has decided that no transaction above Rs 3 lakh will be permitted in cash. Accepting a suggestion by Special Investigation Team on Black Money to ban cash transactions above Rs 3 lakhs, the Finance Minister has proposed an amendment to the Income-tax Act in the Finance Bill.

The new rule will come effectively from April 1, 2017. The decision to ban all cash transactions beyond a threshold is made based on the recommendation of the Special Investigation Team on black money which was set up by the Supreme Court, Arun Jaitley said.