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Income tax: New fiscal starts, beware of cash transactions
April 24, 2017
- Promoting digital economy and demotivating cash transactions was one of the key agendas in the Union Budget 2017.
- While moving the Finance Bill for approval in Lok Sabha, Finance Minister Arun Jaitley introduced a few amendments to the Finance Bill 2017.
- Apart from addressing certain ambiguities arising from the proposals in the original Bill, the amendments also aim to further restrict cash transactions.
- Cash payment of expenses or aggregate of payments made to a person in a day is restricted to Rs 10,000 instead of the previous limit of Rs 20,000.
- If cash payment is made in excess of the specified limit, no deduction under the income tax laws would be allowed for such expenses.
