Government reduces acceptance of cash loans and repayment limit to Rs 10,000 in total; total spending limit also reduced
New Delhi, Jan 31 (KNN) The Department of Revenue has reduced the limit for accepting and reimbursing cash loans from Rs 20,000 to Rs 10,000 in total.
The department has also reduced the limit of all expenses in total to Rs 10,000 in cash.
This decision will likely impact micro, small and medium-sized enterprises (MSMEs), as entrepreneurs in the informal sector rely heavily on cash lending and cash spending.
CBDT notified Rule 6BBA and amended Rule 6DD to include a new method of payment as non-cash payments to obtain benefits/reliefs under various provisions of the Income Tax Act 1961.
In a notification, the Central Board of Direct Taxes (CBDT) said: “The cases and circumstances in which a payment or a set of payments exceeding ten thousand rupees may be made to a person within a day, other than by check of beneficiary drawn on the account a bank draft from a bank or account beneficiary or the use of an electronic clearing system through a bank account or through any other electronic mode as prescribed by Rule 6ABBA. »
Previously the Income Tax Rule 1969, 6DD stated: “Cases and circumstances in which a payment or set of payments exceeding twenty thousand rupees may be made to a person in one day, otherwise than by check account payee drawn on a bank or bank draft account payee.
Rule 6BBA states that, “The following shall be the other electronic modes for the purposes of clause (d) of the first proviso of Section 13A, clause (f) of subsection (8) of Section 35AD, Subsection (3), Subsection (3A), Subsection (3A) and Subsection (4) of Section 40A, Second Subsection of Clause (1) of Section 43, Subsection (4) of Section 43CA, subsection to subsection (1) of Section 44AD, second conditional clause to subsection (1) of Section 50C, second conditional clause to sub-clause (b ) clause (x) of subsection (2) of section 56, clause (b) of the first condition of clause (i) of the explanation of section 80JJAA, of section 269SS, of article 269ST and article 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 (domestic electronic funds transfer), and
— (h) BHIM (Bharat Interface for Money) Aadhar Pay”.