The Central Government of India (“the Government”) is putting all the efforts to curb the use of cash which is focused on un-accounted transactions. As we all know, not all the transactions that are transacted in cash hold the colour of un-accounted money, the contrary is that all the un-accounted transactions takes place in cash. The Finance Minister in his budget speech for 2017 mentioned that the quantum of black money in Indian economy is huge and this is adversely affecting the revenue of the Government. As a result, the Government is facing lot of resource crunch to fund various welfare programs. In a vision to achieve a less cash economy, and to reduce creation and circulation of black money, section 269ST is proposed to be introduced in the Income-tax Act, 1961 (“the Act”). The provision of this section prohibits transactions in cash exceeding Rs. 3lakhs and leads to a penal provision if the same is violated. It may be noted that this is not the first...
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