The Lok Sabha has passed the Finance Bill 2017 with certain Changes. The Finance Bill was presented in the Lok Sabha on February 1, 2017. Various changes have been made in the Bill.

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Some of important changes made in the Finance Bill, 2017 as passed by the Lok Sabha viz-a-viz the Finance Bill, 2017 presented originally in the Lok Sabha are as under:

Threshold limit prohibiting cash payments reduced to Rs. 2 lacs: It is proposed to be amend the threshold limit of cash payments from rupees three lakhs to two lakhs. under new section 269ST. Any contravention of the aforesaid provision would invite penalty on the recipient under Section 271DA which shall be equivalent to the amount of cash received. However, there would be no penalty if there is good and sufficient reasons for contravention of such provision.

TCS on cash transactions scrapped: The existing provision to collect 1% TCS on cash sale of jewellery above five lakh rupees has been proposed to be omitted. After omission of such provision the TCS liability would attract on any cash transaction for goods or services above rupees two lakhs.

Now the TCS provision on cash payments has been proposed to be omitted. So, any cash receipt of rupees two lakhs or above would only invite penalty on seller as per provisions of Section 269ST. In that case there would be no liability to collect TCS from buyer on such payment.

Aadhaar Number is Mandatory for Returns and PAN Application: The Finance Bill, 2017 as passed by Lok Sabha introduced a new section 139AA which provides that every person who is eligible to obtain Aadhaar Number is required to quote Aadhaar Number in :-

  • PAN application form;
  • Return of income.

Person can quote the Enrollment ID of Aadhaar application form in case he does not possess the Aadhaar Number.

No Limit on Political donations By Corporate: As per the existing provisions of the Companies Act, 2013, companies can donate only up to 7.5% of their average profits to political parties. Now such limit has been proposed to be removed.  A new provision has also been proposed which mandates donation to political parties via account- payee cheques or bank draft or through electronic mode. Further, a provision has been made for funding of political donations through any notified instrument. Now Govt. would get powers to notify electoral bonds for funding of political parties.

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