CURRENT AFFAIRS

Detailed explanation-1: -The tightening of the cap on cash transactions was one of 40 amendments to the Finance Bill proposed by the Centre. “In the official amendments to the Finance Bill, the government has proposed that the limit of ₹3 lakh for cash transactions, beyond which it is illegal, be reduced to ₹2 lakh.

Detailed explanation-2: -No person is permitted to accept Rs. 20, 000 or more in cash a) for any loan or deposit or b) any amount in relation to transfer of any immovable property (even if transfer does not take place). If any cash received from a person for any such purpose is still outstanding to be repaid, then the overall limit of Rs.

Detailed explanation-3: -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-4: -Basic Understanding of Section 269ST As per Section 269ST, any person who enters into a transaction of Rs 2 Lakh or above in cash, will be liable to a penalty of an amount equivalent to the amount of transaction.

Detailed explanation-5: -10, 000 to any person in a day shall not be allowed as deduction in computation of Income. Deeming a payment as Profits and Gains of Business or Profession if the Expenditure is incurred in a particular year but the Cash Payment is made in any subsequent year of a sum exceeding Rs. 10, 000 to a person in a single day.