Govt reduces cash loan acceptance & repayment limit to Rs 10, 000 in aggregate; limit of expenses in aggregate also reduced
New Delhi, Jan 31 (KNN) The Revenue Department has reduced the cash loan acceptance and repayment limit from Rs 20, 000 to Rs 10, 000 in aggregate.
The department has also reduced the limit of all expenses in aggregate to Rs 10, 000 in cash.
The move is likely to impact the micro, small and medium enterprises (MSMEs) as the informal sector entrepreneurs depend heavily on cash loans and expenses in cash.
CBDT has notified Rule 6BBA and amended Rule 6DD to include new payments method as non-cash payments for getting benefits/reliefs under various provisions of the Income Tax Act, 1961.
In a notification, the Central Board of Direct Taxes (CBDT) said, “Cases and circumstances in which a payment or aggregate of payments exceeding ten thousand rupees may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as prescribed in rule 6ABBA.”
Earlier the Income Tax Rule 1969, 6DD stated, “Cases and circumstances in which a payment or aggregate of payments exceeding twenty thousand rupees may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft.”
The Rule 6BBA specifies that, “The following shall be the other electronic modes for the purposes of clause (d) of first proviso to section 13A, clause (f) of sub-section (8) of section 35AD, sub-section (3), sub-section (3A), proviso to sub-section (3A) and sub-section (4) of section 40A, second proviso to clause (1) of Section 43, sub-section (4) of section 43CA, proviso to sub-section (1) of section 44AD, second proviso to sub-section (1) of section 50C, second proviso to sub-clause (b) of clause (x) of sub-section (2) of section 56, clause (b) of first proviso of clause (i) of Explanation to section 80JJAA, section 269SS, section 269ST and section 269T, namely:−
-- (a )Credit Card;
-- (b) Debit Card;
-- (c) Net Banking;
-- (d) IMPS (Immediate Payment Service);
-- (e) UPI (Unified Payment Interface);
-- (f) RTGS (Real Time Gross Settlement);
-- (g) NEFT (National Electronic Funds Transfer), and
-- (h) BHIM (Bharat Interface for Money) Aadhar Pay”.
New Delhi, Mar 29 (KNN) India’s overall exports, that includes services and merchandise exports,…
New Delhi, Mar 28 (KNN) For the fiscal year starting from April 1, 2023,…
New Delhi, Mar 28 (KNN) The Central Board of Trustees (CBT), EPF on Tuesday…
New Delhi, Mar 22 (KNN) Despite a modest recession in the US and Europe,…
New Delhi, Mar 21 (KNN) In the fiscal year 2022-23, India’s economy is expected…