From April 1, Rs 2 lakh cash transaction limit, Aadhaar must for I-T returns

From April 1
The government today proposed to lower cap for money transactions to Rs 2 lakh from April 1,

New Delhi, March 22: The government today proposed to lower cap for money transactions to Rs 2 lakh from April 1, make biometric identifier Aadhaar obligatory for recording assessment forms and permit Cheque only contributions to political parties as a major aspect of the tirade against black money.

Union Finance Minister Arun Jaitley moved a “phenomenal” 40 corrections to his seven-week-old Finance Bill 2017, which were firmly restricted by opposition parties drove by the Revolutionary Socialist Party (RSP), the Trinamool Congress (TMC) and the Biju Janata Dal (BJD), which felt the government was following along non-impose charges in the enactment to profit Bills, blocking the requirement for a gesture from the Rajya Sabha where it doesn’t have a greater part yet.

The Opposition named the acquaintance of alterations with Acts administering sectoral tribunals like those of Railway Claims, Highway and Cinematograph as “secondary passage” enacting and taking ceaselessly right of Parliament to casing laws.

Arun Jaitley justifies the move, saying the revisions were all “accidental arrangements” to the Finance Bill and identify with Budget declarations like consolidating a few tribunals and making uniform service conditions.

Among the most critical amendments was one identifying with his 1 February proposition to lowering money exchange to Rs 3 lakh. This cap is presently proposed to be brought down to Rs 2 lakh, at standard with the present necessity of citing permanent account number (PAN) for money spendings.

“The punishment for disregarding this is a fine identical to the measure of exchange,” Revenue Secretary Hasmukh Adhia tweeted.

The fine will be payable by individual or foundation accepting money.

Another correction made proposes to make Aadhaar number an absolute necessity while applying for PAN and filing of income tax returns from 1 July.

The amendment gives that a man holding PAN as on 1 July, 2017, needs to intimate his Aadhaar number to authority in a way which will be informed by the government.

“Given that if there should arise an occurrence of inability to insinuate the Aadhaar number, then the permanent account number allotted to the individual might be considered to be invalid…,” the amendment said.

A change to the Companies Act of 2013 made donations by organizations to electoral trusts just through account payee check, bank draft or electronic exchange.

This alteration additionally changed the dialect to accommodate each organization unveiling in its benefit and misfortune account the total sum added to such trusts.

The move is in a state of harmony with Jaitley’s Budget proposition of introducing bearer electoral bonds, which could be obtained by a donor utilizing checks from a scheduled bank and encashed just through a notifiedbank account of a political party inside the restricted span such instrument.

These moves together are gone for “purifying political money”, he said.

Earlier, Speaker Sumitra Mahajan overruled Opposition complaints, saying rules allow “non-tax assessment proposition” to be incorporated into the Finance Bill.

“In this way, incidental provisions can be made. That is the reason, keeping in view that govern 219 does not particularly bar incorporation of non-tax assessment recommendations in a Finance Bill, I rule out the Point of Order,” she said while dismissing objection moved by N K Premachandran (RSP), which were upheld by the Trinamool Congress (TMC) and the Biju Janata Dal (BJD).

Prior to this,  Arun Jaitley cited first Lok Sabha Speaker G V Mavalankar to express that Article 110 of the Constitution relating to Money Bills does not restrict itself to provisions entirely relating to tax yet includes incidental provisions.

He said the revision to a few tribunals is being made to accommodate uniform administration conditions to its member judges. “Thus, all that is being done – 40 may sound vast – is there is just a single revision which says there will be consistency in service conditions and the compensation structure of each one of those retired judges who are being designated in every one of these tribunals,” he stated, including this constitutes Money Bill as it straightforwardly identifies with government expenditure.

On electoral bonds, he said a great deal of electoral funding to political parties over the range stopped by method for undisclosed cash.

“In this way, in the Budget declaration, we turned out with a recommendation that there will be a tax incentive impetus required in four diverse ways. One is that monies are paid with check. The maximum cash donation which prior was permitted up to Rs 20,000 will now be permitted up to Rs 2,000 as the Election Commission has suggested.

“Third, there is a mass accumulation through the advanced media and fourth, that there will be electoral bonds issued as per the plan under the Income Tax Act,” he stated, adding that an amendment to the Representation of the People Act was an “off-shoot” incidental provision as RBI will approve a specific bank to issue the electoral bonds. “Thus, these are all incidental declarations to that whole plan which has been made under the Income Tax Act itself,” Arun Jaitley said.

He said if a considerable segment of a Bill manages inconvenience or nullification of tax, then regardless of the possibility that it has other coincidental arrangements, despite everything it can be presented as a Money Bill.

“The push of this is you can’t have a Bill which says the government might spend Rs 1,00,000. How that will be spent, the incidental provisions should be contained. You can’t have an Act which says there will be a 5 percent tax.

“At that point how that 5 percent tax is to be accomplished; what are the deductions to be permitted; who is the evaluating officer; how they are to be designated; what is the appeal provision; how much deposits must be made; these are all incidental provisions. The truth of the matter is that these incidental provisions don’t render a Bill to be a non-cash Bill,” Jaitley included.