Government today moved a fresh proposal to cap cash transactions at Rs 2 lakh instead of Rs 3 lakh as provided in the Union Budget, as it introduced as many as 40 amendments to the Finance Bill in an ‘unprecedented move’.
As the Finance Bill was taken up for consideration in the Lok Sabha, opposition parties protested against the introduction of the amendments to 40 Acts, saying it was being done in the form of “back-door entry”.
The objections by the opposition parties were overruled by Speaker Sumitra Mahajan who ruled that the ‘incidental provisions’ involved in the amendments constitute a ‘Money Bill’ and therefore can be considered as part of the Finance Bill.
Among the amendments made to the Finance Bill was a provision to cap cash transaction at Rs 2 lakh. Earlier, while presenting the Budget on February 1, Finance Minister ArunJaitley had proposed the cap to be Rs 3 lakh with effect from April 1.
“The government has proposed that limit of Rs 3 lakh for cash transaction beyond which it is illegal, be reduced to Rs 2 lakh. The penalty for violating this is a fine equivalent to the amount of transaction,” Revenue Secretary Hasmukh Adhia said.
