Union Budget 2017: Govt intensifies black money war

New Delhi: Setting out his government’s agenda for next year, to “transform, energise and clean India”, the finance minister in his Budget came down hard on black money and economic offenders, while simultaneously giving a push to cashless economy.

Arun Jaitley on Wednesday said that no cash transaction over Rs 3 lakh will be permitted, April 1 onwards, proposed a new legislation to confiscate the assets of economic offenders fleeing the country, and announced a series of measures to promote cashless economy.

Limiting cash transactions to Rs 3 lakh is in line with the recommendations of a Special Investigation Team (SIT) set up on black money. It will help in ensuring a paper trail for every high-value transaction and prevent tax evasion.

“Suitable amendment to the Income-tax Act is proposed in the Finance Bill for enforcing this decision,” Mr Jaitley said.

The finance minister also proposed a new legislation to confiscate the assets of economic offenders and loan defaulters who flee the country to escape the reach of law.

“We have to ensure that the law is allowed to take its own course,” Mr Jaitley said, adding that legislative changes or even a new law could be brought to deal with such absconders.

To boost digital transactions in the post-demonetisation scenario, Mr Jaitley announced a series of measures to promote cashless economy, including the formation of an independent payment regulatory body under the RBI to address lack of enabling infrastructure to boost digital payments.

The finance minister also exempted excise and customs duty on manufacture or import of equipments used in digital transactions, announced two schemes to increase the use of Bhim App, and said that there will be no service charge on railway tickets booked online through IRTC.