Budget 17-18: Cash Dealing Over 3 Lakh Banned

Continuing the surgical strike on black money in Indian economy, Finance Minister Arun Jaitley announced one more shocking decision while presenting Union Budget 2017-18 in Parliament today. He proposed a ban on all cash transactions above Rs 3 Lakh and above that beginning April 1, 2017. Special Investigation Team on black money set up by the Supreme Court earlier has recommended this provision which is followed by Jaitley in this Budget. SIT felt that there is a need to put an upper limit to cash transactions.

‘India is largely a non-tax compliant society and government is putting Rs 3 lakh limit on cash transactions,’ Jaitley said.

Providing relief to those earning between Rs. 2.5 to 5 Lakhs, tax rates are cut down to 5 percent from earlier 10%. However, a surcharge of 10 percent for annual income in Rs.50 Lakh to Rs.1 crore and 15% surcharge on income above Rs.1 crore will continue. Cash donations to political parties from any sources can be up to Rs. 2000.