Govt. Attempts To Trim Cap On Cash Deals From Rs. 3 Lakh To Rs. 2 Lakh

On Tuesday, the government rolled out new bans on cash transactions. On amounts exceeding Rs. 2 lakh, an adhaar card will required to file tax returns along with PAN (Permamnent Account Number) number. This has been conducted to run checkings on black money.

The 44 amendments to the Finance Bill by finance minister Arun Jaitley in Lok Sabha proposes this. These massive changes made by the government became the center of heavy criticism.

Jaitley made important and prominent amendments to the companies act. Through which, the asked for mendatory mention of donation money which is made through bank draft, cheque and other electronic means. This was introduced to bring tarnsperancy in the election funding made by individuals and companies.

The decision has been taken to lower the bar of cash transactions which was assumed to be very high earlier. A government official expained it like, “The Rs 3 lakh ceiling was high given the level of per capita income in India when there are developed countries which restrict cash transactions above $100”.

Hasmukh Adhia tweeted, “The penalty for violating this is a fine equivalent to the amount of transaction”. After this transactions undertaken above Rs. 2 lakh will be considered illegal.

The provision of adding Aadhaar in the tax returns mandates has been made to make sure that there are not so many faux bank accounts. Many account holders are using more than one PAN numbers to open the bank accounts which is why they have included Adhaar card in it. As adhaar contains all information about a particular person, the fake returns can be tracked better now. From July 1, adhaar will be a mandatory provision.

The important amendments made by the finance minister, Arun Jaitley was extensively conflicted by the RSP, Biju Janata Dal and Trinamool Congress.

On the other hand, the finance minister did not conform to the criticism.

Jaitley, however, staunchly defended the move, arguing that they were “incidental provisions” to the Finance Bill and were linked to budget announcements such as merger of tribunals and putting in place uniform service conditions.

 

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