Anyone transacting in cash above the newly imposed limit of Rs 3 lakh will have to pay a penalty of a similar amount, according to a top government official. 

Union Finance Minister Arun Jaitley announced in his budget speech that on the recommendation of the Special Investigation Team (SIT) on Black Money, the government had decided not to allow cash transactions above Rs 3 lakh.

Any individual or firm which pays anyone over this amount will have to pay a 100 per cent penalty of the amount which exceeds this limit, according to Revenue Secretary Hasmukh Adhia. #casansaar.