WAR ON BLACK MONEY

Budget 2017 battles the parallel economy by bringing in government oversight, penalties and restrictions

Restrictions on daily cash transactions

Limit of Rs 3 lakh (per person per day) on cash transactions. In case of a breach, the receiver

pays penalty equal to the total amount received

Penalty on delay in filing tax return

Rs 5,000 fine for returns filed after due date, but on or before December 31 of assessment year. Rs 10,000 fine otherwise (Rs 1,000 if total income below Rs 5 lakh)

Cashless businesses pay less tax

The use of cash to conduct business will lead to lower tax benefits. Businesses paying out more than Rs 10,000 a day in cash will not be eligible for tax exemptions

Tougher PAN rules

New section of Income Tax Act proposed to strengthen PAN mechanism. All payments that are subject to TDS will require a PAN number. Failure to comply will result in double TDS being charged

Penalty for incorrect information

Accountants, registered valuers and merchant bankers will have to pay a penalty if found to have furnished incorrect information