Business Daily from THE HINDU group of publications
Monday, Mar 03, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Monday, Mar 03, 2008 ePaper | Mobile/PDA Version |
|
|
|
|
|
|
|
Industry & Economy
-
Budget Aggregation merits reconsideration 
The proposed aggregation of all cash payments even if the single payment is less than Rs 20,000 made on a single day for disallowance under Section 40A(3) of the Income-Tax Act 1961 merits reconsideration on the following grounds: As has been stated and known to all this provision was introduced for curbing black money. But if both the parties are assessees and if accounted properly, the question of black money does not arise and naturally there need not be any disallowanc e at all. In the present scenario of fast growth and global competitiveness, every business enterprise is struggling hard to survive, leave alone the part of excelling others. In such a situation fixing such monetary limits will be a hindrance to growth, because on many occasions cash payments become a necessity to get hold of the business transaction since other modes of payments are not reliable and are delayed also. Alternatively direct cash payments into the bank account of the party concerned can be exempted from the purview of section because of the present day anywhere banking concept. It is suggested to drop the amendment or to enhance the limit in the event of sticking to disallowance or to remove the disallowance in total so as to allow the Indian business community to grow faster to compete the global players. CA. M. Lakshmanan, Chartered Accountant, Madurai.
More Stories on : Budget | Income Tax
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
 |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|