With the goal to check money laundering, black money and terrorism funding, government will be reducing the cash transaction limits further from the current Rs. 3 lakhs to Rs. 2 lakhs. Beyond these limits, a PAN card would be required. And if one is in violation, both the individuals and organizations receiving such payments. In the early years, penalty will be light but will become more strict with higher penalties in later years.
Source: Business Standard
- 26 Mar 2017
The Election Commission has proposed reducing the limited for anonymous donations from Rs. 20,000 to Rs. 2000, which could be further brought down. It wants to amend the Represent the People Act, 1951 to ensure political parties maintain all accounts of donations and submit audited accounts annually. It said that some funding comes from small donors but bulk of it comes from large donors. Parties should go for computerization to track all funds receipt and expenses to the last paisa. EC feels if crores of citizens have to face hardships due to demonetization, then political parties should also clean-up. As every citizen is being asked to account for every Rs 500 or Rs 1,000 note, merchants and traders are asked to go cashless, political parties also need to become fully transparent. All points are reasonable and the EC should start implementing them.
- 28 Dec 2016