Cash transaction capped to Rs 2 lakh, Aadhar must for filing I-T return, PAN
New Delhi : In yet another move to curb black money in India, the government proposed a fresh ceiling of Rs 2 lakh on cash transactions, which is lower than the Rs 3 lakh proposed in Budget 2017-18.
An amendment to this effect, was one among the 40 amendments proposed by Finance Minister Arun Jaitley to the Finance Bill, 2017, while moving for its consideration and passage in the Lok Sabha.
"In the official amend.to FBill Govt has proposed that limit of 3 lakhs for cash tranx, beyond which it is illegal, be reduced to 2 lakhs," tweeted Revenue Secretary Hasmukh Adhia.
1/2 In the official amend.to FBill Govt has proposed that limit of 3 lakhs for cash tranx,beyond which it is illegal, be reduced to 2 lakhs— Dr Hasmukh Adhia (@adhia03) March 21, 2017
"The penalty for violating this is a fine equivalent to the amount of transaction," he said in a separate tweet.
2/2 The penalty for violating this is a fine equivalent to the amount of transaction— Dr Hasmukh Adhia (@adhia03) March 21, 2017
Jaitley had proposed that the cap on cash transactions be Rs 3 lakh with effect from April 1.
The government proposed to make Aadhaar Card mandatory for filing income tax returns and also applying for a Permanent Account Number (PAN).
Besides being necessary for filing an income tax return, any application for an income tax PAN will also have to state the applicant's Aadhaar or 12-digit unique ID which is backed by biometrics like finger prints and iris scans.
Moving the Bill, Jaitley spoke in defence of amendments made to 40 acts which had been criticised by opposition members of the house on a point of order.