Cash transactions proposed to be capped at Rs 2 lakh


New Delhi, Mar 21 (PTI): Government today moved a fresh proposal to cap cash transactions at Rs 2 lakh instead of Rs 3 lakh as provided in the Budget, as it introduced as many as 40 amendments to the Finance Bill in an 'unprecedented move'. As the Finance Bill was taken up for consideration in the Lok Sabha, opposition parties like TMC, BJD and RSP protested against the introduction of the amendments to 40 Acts, saying it was being done in the form of "back-door entry".

The amendments to the laws like Companies Act, Employees Provident Fund, Smuggling and Foreign Exchange Act, TRAI Act and Information Technology Act, have been moved with an aim of making the functioning of tribunals more efficient by merging the smaller ones and reducing their numbers from 40 to 12. The objections by the opposition parties were overruled by Speaker Sumitra Mahajan who ruled that the 'incidental provisions' involved in the amendments constitute a 'Money Bill' and therefore can be considered as part of the Finance Bill.

Among the amendments made to the Finance Bill was a provision to cap cash transaction at Rs 2 lakh. Earlier, while presenting the Budget on February 1, Finance Minister Arun Jaitley had proposed the cap to be Rs 3 lakh with effect from April 1. A penalty of equal amount would be levied in case of violation of the provision, according to a tweet by Revenue Secretary Hasmukh Adhia after the amendment was moved. Jaitley, while defending the move to make amendments, invoked first Lok Sabha Speaker G V Mavalankar.

He said if a substantial portion of a bill deals with imposition or abolition of tax, then even if it has other incidental provisions, it still can be introduced as a Money Bill. "You cannot have a bill which says government will spend Rs 100,000 crore without detailing how it would be spent. You cannot have a bill where you say there will be 5 per cent without specifying what will be the deduction, what will be the power of assessing officer, appeal provision... No tax can be imposed without reference to courts or tribunals.. These are incidental provisions...," Jaitley said.

The Minister said opposition's objection is borne out the language in Article 110(1) and ever since the inception, the House has been debating on the word 'only' used in the Article.

 

  

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Comment on this article

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Wed, Mar 22 2017

    Sanitary napkins is a necessary item for a woman, that is taxed. That means a woman is taxed for being a woman. In future, Govt may give on production of Adhaar card, one condom a week, that is without tax. If one wants more, purchase at market, which is tax inclusive. Ache din of tax, tax and tax.

    DisAgree [2] Agree [9] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Mar 21 2017

    After earning & paying all taxes we deposit our hard earned money in Banks.
    First you made us wait in queue to withdraw this money.
    Now you tell us how to use it.
    Certainly we can never get such 'Acche Din' ...

    DisAgree [6] Agree [30] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Tue, Mar 21 2017

    dear Fekuji

    Enough is enough!! keep all our hard earned money with you and give us Rs. 100/= for our daily use.

    DisAgree [8] Agree [33] Reply Report Abuse

  • Elwyn Goveas, valencia

    Tue, Mar 21 2017

    We fools have elected you and now we have to follow you.

    DisAgree [8] Agree [28] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Mar 21 2017

    Very ambitious but can enforce this ...

    DisAgree [5] Agree [16] Reply Report Abuse

  • G R PRABHUJI, Mangalore

    Tue, Mar 21 2017

    Nobody knows how many Aache Din yet to come.

    DisAgree [7] Agree [27] Reply Report Abuse


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