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Govt proposes cash transactions limit to Rs 2lakh; Makes Aadhaar mandatory

ENEWSTIME Desk by ENEWSTIME Desk
March 22, 2017 - Updated on July 18, 2025
in Main, Old Archive
Govt proposes cash transactions limit to Rs 2lakh; Makes Aadhaar mandatory
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Mar 22, 2017: The Government has moved a fresh proposal to cap cash transactions at two lakh rupees instead of three lakh rupees as provided in the Union Budget 2017-18.

It is one of the important amendments introduced in the Finance Bill 2017. Finance Minister Arun Jaitley moved 40 amendments to his seven-week old Finance Bill 2017 in Lok Sabha yesterday. The bill seeks to give effect to the financial proposals of the Central Government for the next financial year.

As the Finance Bill was taken up for consideration in the Lok Sabha, the opposition parties including TMC, BJD and RSP protested against the introduction of these amendments. Mr Jaitley justified the move, saying the amendments were all incidental provisions to the Finance Bill and relate to Budget announcements like combining some tribunals and creating uniform service conditions.

According to the amendments, Cash transactions above two lakh rupees will be illegal once the Finance Bill gets the President’s assent. The penalty for a violation will be a fine equivalent to the value of the transaction. Income tax payers would have to declare their Aadhaar number in all tax returns filed from 1st of July.

They would also have to link the Aadhaar number with the PAN before the July deadline. According to the bill, PAN cards that are not linked will be deemed invalid. An amendment to the Companies Act of 2013 made donations by companies to electoral trusts only through account payee cheque, bank draft or electronic transfer. (AIR News)

Tags: AadhaarArun JaitleyCashHome BannerPAN

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