Asking people to stop high-value cash transactions, Revenue Secretary Hashmukh Adhia on Sunday said that there will be much higher penalety for high-value cash transactions.

“Penalty for doing cash transactions to be steep & receiver to have to pay amount equivalent to cash received,” Adhia said.

“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,” he added.

Talking about corporate tax, Adhia said, “Reduction in corporate tax is challenge & cannot be done unless there is increase in share of personal income tax.”

In order to promote cashless economy, Union Finance minister Arun Jaitley in his Union Budget 2017 has proposed cash ban for transactions above Rs.3 lakh.

(With inputs from agencies)