The government today proposed to lower the cash transaction limit to Rs 2 lakh, from Rs 3 lakh announced in the Budget, as it introduced 40 amendments to the Finance Bill in an unprecedented move.
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 many amendments, saying it was being done as a "back-door entry". Lok Sabha Speaker Sumitra Mahajan, however, overruled the objections raised by the opposition parties, saying the incidental provisions involved in the amendments constitute a Money Bill and therefore can be considered as part of the Finance Bill. The proposed amendments to the Finance Bill include a provision to cap legal cash transactions at Rs 2 lakh. While presenting the Budget on February 1, Finance Minister Arun Jaitley had proposed to make any cash transaction beyond Rs 3 lakh as illegal with effect from April this year. A penalty of equal amount would be levied in case of any violation of the provision, Revenue Secretary Hasmukh Adhia tweeted after the amendment was moved.
Another senior revenue department official said the move was intended to make the law more stringent to clamp down on cash dealings, which was giving rise to black money.
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