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

India Today - - COVER STORY -

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

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