Cash Payments Limited to Rs. 2 Lakhs from April 1
- The Central Government has brought down the cash payments limit to Rs. 2 Lakhs. Earlier in the budget announcement, the limit was Rs. 3 Lakhs. The Government proposed 40 amendments to the Bill.
- Aadhar Card would be made mandatory to file tax returns, and also to apply for the Permanent Account Number.
- The move is aimed to control the cash flow and deal with it effectively.Aadhar is mandatory for non-cash payment modes such as bank drafts, cheques and people transferring for electoral trusts.
- The main objective is to curb corruption and illegal transactions.
- Violation of rules will enable the department to charge penalty, of the same amount of transaction.
- The penalty would be applicable and same to business establishment and individuals.
- The fines will be levied by the Joint Commissioners of the Income Tax Department. If the person is not providing any details of the transaction.
- The provision does not apply to the post offices, banks and the government.
Indian Prime Minister Narendra Modi has announced demonetization of the old series of Rs. 500 and Rs. 1000 notes. The move which lead to cash crisis in the Indian economy.
The Government proposed 40 Amendments to the Finance Bill. AADHAR was made mandatory for filing I-T returns and applying Permanent Account Number (PAN). Amendments have been introduced to the Companies Act for non-cash payment.
Indian Firms ECB Stood at $2.23 Billion
- Reserve Bank of India has released the data of the firms which procured funds from the External Commercial Borrowings (ECB). According to the data, the firms have at $2.23 billion in February 2017, RBI has released this data on March 22, 2017.
- The domestic companies in India have borrowed over $1.35 from foreign sources through external commercial borrowings (ECBs).
- The current data includes the money raised by the firms through Rupee Denominated Bonds (RDBs) in overseas markets.
- In the month of February, the firms raised funds worth $1.01 billion through approval and automatic routes. The remaining funds of $1.22 billion were procured from the RDB channel.
- Reliance Industries has raised funds worth $550 million through approval route (External Commercial Borrowings) to refinance its previous ECB loan.
- Through the route of automatic, JSW Steel has raised $90 million for acquisition. Torrent Pharmaceuticals raised $45 million to refinance previous ECB, Tulip Diagnostics raised $64.33 million to refinance rupee loans.
Subsidy for Power Loom Units to Set up Solar Plant
- The Central Government will provide financial support to the small power loom units to install Solar Photo Voltaic Plant (SPV) in India. The Government has officially approved a new scheme in connection with this scheme.
- The scheme is named as Solar Energy Scheme.
- The scheme aims to support financially and encourage people to use renewable energy. Not relying completely on State resources. This reduces the burden of the Government and people will no longer face the issue of power shortage.
- The decentralized industry faces large scale power crisis.
- The two types of SPV available under this scheme:
- On-Grid Solar Power Plant would be beneficial for the people where thepower cut/shortage is minimal andtariff of the electricity is very high.
- Off-Grid Solar Power Plant applies to the sector where power supply is low and the supply is continuous.
ICICI Launches New App for Private Customers
- India’s leading private bank has launched new mobile app to encourage rural customers. The newly launched application Mera IMobile is exclusively for the rural customers.
- The application will benefit rural customers to have access to banking services and mostly information related to the agriculture services.