BRIEF ON AMENDMENTS RELATING TO CASH TRANSACTIONS WHICH WILL TAKE EFFECT FROM 1ST APRIL, 2017
Restriction on cash transactions above Rs. 300000 : Any transaction (including capital asset) shall be strictly done only through bank channels. Heavy penalty is imposed on the receiver of cash.
Restriction on cash denations to Charitable Trusts: Deduction at the rate of 50% is granted in case of donation is made to a registered Charitable or religious trust. Thus, if you want to make any donations and take income tax benefit, the same has to be made through banking channel.
Restrictions in capital expenditure done in cash: Cash payments above Rs.10000 for purchase of capital asset will be disallowed and depreciation cannot be claimed
Cash books during assessment: To discourage cash transactions it is likely that they would be looked into in details.
Please note that all above changes will come into effect from the dates mentioned above after assent of Finance Bill 2017 by Hon'ble President of India and till that time these are proposed amendments.
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