Bud­get 2017 takes Steps to dis­cour­age Cash transactions & curb Black Money

Business Sphere - - ARUN JAITLEY, MINISTER OF FINANCE - By Our Cor­re­spon­dent

Var­i­ous leg­isla­tive steps have been taken by the Fi­nance Act, 2017 to curb black money by dis­cour­ag­ing cash trans­ac­tion and by pro­mot­ing dig­i­tal econ­omy. These promi­nently in­clude plac­ing re­stric­tion on cash trans­ac­tion by in­tro­duc­tion of New Sec­tions 269ST & 271DA to the In­come-tax Act. It has been pro­vided that no per­son (other than those spec­i­fied therein) shall re­ceive an amount of two lakh ru­pees or more,

• in ag­gre­gate from a per­son in a day;

• in re­spect of a sin­gle trans­ac­tion; or

• in re­spect of transactions re­lat­ing to one event or oc­ca­sion from a per­son, Oth­er­wise than by an ac­count payee cheque or ac­count payee bank draft or use of elec­tronic clear­ing sys­tem through a bank ac­count. Any con­tra­ven­tion to the said pro­vi­sion shall at­tract penalty of a sum equal to the amount of such re­ceipt. How­ever, the said re­stric­tion is not ap­pli­ca­ble to any re­ceipt by Govern­ment, bank­ing com­pany, post of­fice sav­ings bank or co-op­er­a­tive bank. It has also been de­cided that the re­stric­tion on cash trans­ac­tion shall not ap­ply to with­drawal of cash from a bank, co-op­er­a­tive bank or a post of­fice sav­ings bank. Nec­es­sary no­ti­fi­ca­tion in this re­gard is be­ing is­sued. It has also been pro­vided that any cap­i­tal ex­pen­di­ture in cash ex­ceed­ing ru­pees ten thou­sand shall not be el­i­gi­ble for claim­ing de­pre­ci­a­tion al­lowance or in­vest­ment-linked de­duc­tion. Sim­i­larly, the limit on rev­enue ex­pen­di­ture in cash has been re­duced from Rs.20,000 to Rs.10,000. In or­der to pro­mote dig­i­tal pay­ments in case of small un­or­ga­nized busi­nesses, the rate of pre­sump­tive tax­a­tion has been re­duced from 8% to 6% for the amount of turnover re­alised through cheque/dig­i­tal mode. Re­stric­tion on re­ceipt of cash do­na­tion up to Rs. 2000 has been pro­vided on po­lit­i­cal par­ties for avail­ing ex­emp­tion from In­come-tax. Fur­ther, it has also man­dated that any do­na­tion in cash ex­ceed­ing Rs.2000 to a char­i­ta­ble in­sti­tu­tion shall not be al­lowed as a de­duc­tion un­der the In­come-tax Act.

Manda­tory Quot­ing of Aad­haar for PAN Ap­pli­ca­tions & Fil­ing Re­turn of In­come

Sec­tion 139AA of the In­come-tax Act, 1961 as in­tro­duced by the Fi­nance Act, 2017 pro­vides for manda­tory quot­ing of Aad­haar / En­rol­ment ID of Aad­haar ap­pli­ca­tion form, for fil­ing of re­turn of in­come and for mak­ing an ap­pli­ca­tion for al­lot­ment of Per­ma­nent Ac­count Num­ber with ef­fect from 1st July, 2017. It is clar­i­fied that such manda­tory quot­ing of Aad­haar or En­rol­ment ID shall ap­ply only to a per­son who is el­i­gi­ble to ob­tain Aad­haar num­ber. As per the Aad­haar (Tar­geted De­liv­ery of Fi­nan­cial and Other Sub­si­dies, Ben­e­fits and Ser­vices) Act, 2016, only a res­i­dent in­di­vid­ual is en­ti­tled to ob­tain Aad­haar. Res­i­dent as per the said Act means an in­di­vid­ual who has resided in In­dia for a pe­riod or pe­ri­ods amount­ing in all to one hun­dred and

eighty-two days or more in the twelve months im­me­di­ately pre­ced­ing the date of ap­pli­ca­tion for en­rol­ment. Ac­cord­ingly, the re­quire­ment to quote Aad­haar as per sec­tion 139AA of the In­come-tax Act shall not ap­ply to an in­di­vid­ual who is not a res­i­dent as per the Aad­haar Act, 2016.

Lok Sabha Speaker con­grat­u­lates the Prime Min­is­ter, Union Fi­nance Min­is­ter, Mem­bers of Union Cabi­net, Mem­bers of Lok Sabha and Of­fi­cers and Staff of Lok Sabha Sec­re­tariat, Min­istry of Fi­nance & Par­lia­men­tary Af­fairs for com­plet­ing all the Bud­get re­lated pro­cesses be­fore 1st April;

States it is a his­tor­i­cal event;Al­lo­cated Funds will be now avail­able with the dif­fer­ent De­part­ments w.e.f. from 1st April and they will have full one year to spend the same on old and new Schemes;Will also help the State Gov­ern­ments in pre­par­ing their Bud­get The Hon’ble Speaker of Lok Sabha, Smt. Su­mi­tra Ma­ha­jan con­grat­u­lated the Prime Min­is­ter, Fi­nance Min­is­ter, all the mem­bers of Union Cabi­net, Mem­bers of Lok Sabha and Of­fi­cers &Staff of Lok Sabha Sec­re­tariat, Fi­nance and Par­lia­men­tary Af­fairs Min­istries among oth­ers on com­pet­ing all the Bud­get re­lated pro­cesses by 1st April, 2017. The Hon’ble Speaker said that as a re­sult, the al­lo­cated funds to each Depart­ment will be now avail­able to them on 1st April and they will have full one year to spend the same on old and new schemes. Hon’ble Lok Sabha Speaker fur­ther said that this has hap­pened for the first time in the his­tory of In­de­pen­dent In­dia and is a his­tor­i­cal oc­ca­sion. The Hon’ble Lok Sabha Speaker, Smt. Su­mi­tra Ma­ha­jan fur­ther said that for the past many decades, the Bud­get used to be pre­sented in the last days of Fe­bru­ary, some­times in March or April and de­lay in bud­getary al­lo­ca­tions by 4-5 months was part of the process. She fur­ther said that this timely com­ple­tion of all Bud­get re­lated pro­cesses will also help the State Gov­ern­ments in pre­par­ing their re­spec­tive State Bud­get. The Hon’ble Lok Sabha Speaker, Smt. Su­mi­tra Ma­ha­jan said that this has been made pos­si­ble be­cause of the co­op­er­a­tion and sup­port of all the Mem­bers of the House and dif­fer­ent po­lit­i­cal par­ties. She specif­i­cally thanked the Prime Min­is­ter, Fi­nance Min­is­ter, Min­is­ters of the Union Cabi­net, the of­fi­cers and staff of the Lok Saha Sec­re­tariat and those of Fi­nance and Par­lia­men­tary Af­fairs Min­istries among oth­ers for their con­tri­bu­tion in achiev­ing this mega task. She said that his was a big job and a new be­gin­ning has been made in the pub­lic in­ter­est. She thanked all once again.

Cen­tral Board of Di­rect Taxes re­quests for stake­holder’s com­ments on draft of No­ti­fi­ca­tion to be is­sued Un­der Sec­tion 10(38) of the In­come-tax Act, 1961

Sec­tion 10(38) of the In­come-tax Act, 1961 (‘the Act’), prior to its amend­ment by Fi­nance Act, 2017, pro­vided that the in­come aris­ing by way of a trans­fer of long term cap­i­tal as­set, be­ing eq­uity share in a com­pany, shall be ex­empt from tax if such trans­fer is un­der­taken af­ter 1st Oc­to­ber, 2004 and charge­able to Se­cu­ri­ties Trans­ac­tion Tax (STT) un­der Chap­ter VII of the Fi­nance (No. 2) Act, 2004. In or­der to curb the prac­tice of declar­ing un­ac­counted in­come as ex­empt long term cap­i­tal gain by en­ter­ing into sham transactions, the Fi­nance Act, 2017 amended the pro­vi­sions of sec­tion 10 (38) of the Act to pro­vide that ex­emp­tion un­der this sec­tion for in­come aris­ing on trans­fer of eq­uity share ac­quired or on af­ter 1st day of Oc­to­ber, 2004 shall be avail­able only if the ac­qui­si­tion of share is charge­able to STT. How­ever, to pro­tect the ex­emp­tion for gen­uine cases where the STT could not have been paid like ac­qui­si­tion of share in IPO, FPO, bonus or rights is­sue by a listed com­pany ac­qui­si­tion by non­res­i­dent in ac­cor­dance with FDI pol­icy of the Govern­ment etc, it was also pro­vided that the Cen­tral Govern­ment shall no­tify the ac­qui­si­tion for which the con­di­tion of charge­abil­ity to STT shall not ap­ply. In view of the above, it is pro­posed to no­tify that the con­di­tion of charge­abil­ity to STT shall not ap­ply to all transactions of acquisitions of eq­uity shares en­tered into on or af­ter the first day of Oc­to­ber, 2004 other than the spec­i­fied transactions. In or­der to have wider con­sul­ta­tion in this mat­ter, the draft of no­ti­fi­ca­tion pro­posed to be is­sued un­der sec­tion10 (38) of the Act has been up­loaded on the web­site www.in­cometaxin­dia.gov. in. The stake­hold­ers are re­quested to sub­mit their com­ments/sug­ges­tions on the draft no­ti­fi­ca­tion by 11th April, 2017 at the email ad­dress dirtpl2@ nic.in.

Arun Jait­ley, Min­is­ter of Fi­nance

Hon’ble Speaker of Lok Sabha, Smt. Su­mi­tra Ma­ha­jan

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.