Union Budget – Cash transactions

1. 100% penalty on cash transaction over Rs 3 lakh from April 1

What does it mean?

It means that from 1st April 2017, if we do a cash transaction on a single day with the same person for an amount exceeding Rs.3 Lakhs, then it will amount for a 100% Penalty.

The Penalty will be levied on the receiver of Cash.

Earlier there was no such clause and hence this is clause it really a great initiative to curb black money. But it would have been great if the limit would have been kept at Rs.50000 as recommended by Andra Pradesh Chief Minister Chandrababu Naidu before the Budget..

Considering the Limit of Rs.3 Lakhs, it seems the purpose of curbing cash transactions/Encouraging Digital transactions/ will not be met!

2. Political Parties Funding

The maximum amount of cash donation for a political party will be Rs. 2,000 from any one source.

This is a great initiative to regularize the donations received by political parties in black money/cash

3. Funding of Charitable Trusts

The limit of cash donation by charitable trusts is reduced to Rs 2,000 from Rs 10,000.

This is a great initiative to regularize the donations received by Charitable Trusts in black money/cash

Leave a Reply

Your email address will not be published. Required fields are marked *