Income Tax Department today warned people against indulging in cash transaction of two lakh rupees or more saying the receiver of the amount will have to cough up an equal amount as penalty. <br/><br/>In a advertisement published in the newspapers, it also advised people with knowledge of such dealings to tip-off the tax department by sending an email to blackmoneyinfo@incometax.gov.in.<br/><br/>The government has banned cash transactions of over two lakh rupees from 1st of April this year through the Finance Act 2017. The newly inserted section in the Income Tax Act bans such cash dealings on a single day, in respect of a single transaction or transactions relating to one event or occasion from an individual.<br/><br/>The tax department said the contravention will entail levy of 100 per cent penalty on receiver of the amount. However, the restriction is not applicable to any receipt by government, banking company, post office savings bank or co-operative bank.<br/><br/>The move to ban cash transaction above a threshold is aimed at curbing black money by discouraging cash transaction and promoting digital economy.