CURRENT AFFAIRS

Detailed explanation-1: -The ₹3 lakh ceiling on cash transactions from April 1, 2017, proposed in the Union Budget 2017-18, has been revised to ₹2 lakh, with the government introducing an amendment to this effect in the Finance Bill cleared by the Lok Sabha on Tuesday.

Detailed explanation-2: -The government has introduced a cash transaction limit per day, which is also enacted in Finance Bill, 2017. That means, a person in a day, is allowed to carry out cash or related transactions that is below Rs 2 lakh.

Detailed explanation-3: -Now, the limit for any cash payment against expenses made to a single person in the single day is Rs 10, 000. Also, cash payment made against capital expenditure on asset for more that Rs. 10, 000 will not be added in the cost of the asset.

Detailed explanation-4: -According to Section 269ST, no person can receive an amount of Rs 2 lakh or more in aggregate from a person in a day in a single transaction; or, in multiple transactions relating to one event or occasion from a person.

Detailed explanation-5: -Income Tax law provides for permissible cash expenses as deductible expenses for cash payments exceeding Rs 10, 000 in a single day i.e. payment is made otherwise than by electronic clearing system or an account payee check or an account payee bank draft won’t be permitted as a deductible expense.