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The Finance Bill 2017 with 40 amendments passed in Lok Sabha

The Finance Bill 2017 passed in Lok Sabha. Various amendments have been made in the Bill, One of the important amendments was making Aadhaar number mandatory for filing of Income Tax returns.

Glimpse of major amendments made related to Direct Taxes in the Finance Bill, 2017 are as under:

TCS on cash transactions removed

The existing provision to collect 1% TCS on cash sale of jewellery above Rs. 5 lakh has been proposed to be omitted. After omission of such provision the TCS liability would attract on any cash transaction for goods or services above Rs.2 lakh.

Aadhaar Number Mandatory

New section 139AA which provides that every person who is eligible to obtain Aadhaar Number is required to quote Aadhaar Number in (a) Pan Application Form and (b) Filing ITR.
Assessee can quote the Enrollment ID of Aadhaar application form in case he does not have the Aadhaar Number.
Every person who has been allotted PAN shall intimate his Aadhaar Number to the authority which will be notified by the Central Govt.

Cap on receipt of cash payments reduced

The Finance Bill, 2017 has amends the threshold limit of cash payments from Rs. 3 lakh to Rs. 2 lakh from 1st April 2017. FM said the cap on cash transaction is being reduced to curb generation of black money.

In Budget 2017, provided a prohibition on receipt of cash payments of Rs. 3 lakh and above under new section 269ST. Contravention of the said provision would impose penalty on the recipient under Section 271DA which shall be equivalent to the amount of Cash received.

Political Donations

A new provision has also been proposed which mandates donation to political parties via account- payee cheques or bank draft or through electronic mode. Further, a provision has been made for funding of political donations through any notified instrument. FM said the move to introduce electoral bonds is for cleansing the political funding

As per the existing provisions of the Companies Act, 2013, companies can donate only up to 7.5% of their average profits to political parties. Now such limit has been proposed to be removed.

Besides, amendments to the Companies Act, the Employees Provident Fund Act, Smuggling and Foreign Exchange Act, TRAI Act and Information Technology Act were passed.

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