Now, govt to curb payments exceeding Rs 10,000 in cash
Union Finance and Corporate Affairs Minister Arun Jaitley proposed to impose restriction on entities incurring expenditure in cash without paying tax in order to control the cash economy and increase TDS compliance.
Presenting the General Budget 2018-19 in Parliament here today, the Finance Minister said, “Currently, the income of trusts and institutions is exempt if they utilise their income towards their objects in accordance with the relevant provisions of the Income-tax Act.”
“However, there is no restriction on these entities for incurring expenditure in cash. In order to have audit trail of the expenses incurred by these entities, it is proposed that payments exceeding Rs. 10,000 in cash made by such entities shall be disallowed and the same shall be subject to tax,” Jaitley added.
Further, in order to improve TDS compliance by these entities, the Finance Minister proposed to provide that in case of non-deduction of tax, 30% of the amount shall be disallowed and the same shall be taxed.