Over last two years of Union Budget, Finance Minister Arun Jaitley was only concerned about cleaning black money in the country. The Minister took the step by making them pay additional taxes and penalties. The process of demonetization helped in clearing lots of black money. However, Finance Minister has now initiated and started focusing on introducing measures to squeeze unaccounted money and discourage the cash deals across Indian economy. The ministry has raised a ban over Rs 3 Lakhs money transactions for charitable trusts.
The Union Budget 2017 clearly quoted that “Political parties will not get more than Rs 2000 donation per person. The transaction must be made only by cheques or digital transaction, but not in cash.” This initiative was taken to reduce the flow of Black money among the political parties.
Prior to that, Government has taken strict actions towards powerful persons like Vijay Mallya, Lalit Modi or even Dawood Ibrahim who have fled the country by arming themselves with legal powers. The government has also started working on the potential misuse of the constitutional safeguards. However, it’s not yet clear that the law will work contemplatively on the past events.
Reports are that Supreme Court has appointed a special team to investigate black money across the country. Any transaction over Rs 3 Lakhs per day will be interrogated; any breach will lead the citizen behind the bars unless you can prove good and suitable reasons. The rule will be not applicable for single transactions like jewellry and expensive goods.
The biggest change in political funding is shrinking the amount of donation limit from Rs 20,000 to Rs 2000. Any donation above Rs 2,000 will have to be made by either by cheque or through electronic means.
New Electoral Bonds will be introduced by Government, which can be purchased from designated banks. It is for those who want to donate for the Political party but not expose their identity. The bonds would have to be deposited in a political party’s designated account and be redeemed within a stipulated time.
For businessmen and professionals, payment through cash over Rs 10,000 will have their own impediments. All the higher amount transaction should be made through electronic means. Read more news.
Want to be a guest author? Register Here to share your business knowledge with our readers.