The Government made amendments to the Finance Bill 2020 proposing to cap cash transactions at Rs 2 lakh instead of Rs 3 lakh and make the Aadhaar card number mandatory while filing the income tax returns, among others.
In presenting the Budget on 1 February, Finance Minister Arun Jaitley had proposed that the cash transactions be Rs 3 lakh effective from 1 April. Among the amendments introduced in the finance bill was a provision to limit the cash transaction to Rs 2 lakh instead.
Revenue Secretary Hasmukh Adhia tweeted that "The fine for a violation will be a fine equal to the value of the transaction." The government also made it obligatory to provide the Aadhaar card number while filing the income tax returns. The decision to link the Aadhaar card to a bank account and make it necessary for the filing of the I-T statements was taken in May last year.
The Aadhaar number will also be required while requesting a PAN card . The India Unique Identification Authority (UIDAI) has said that all devices that use Aadhaar authentication will have to adhere to their new encryption standards from 1 June. The move has been aimed at adding another layer of security as biometric-based digital payments take center stage. Last week, the Aadhaar system got a thumbs up from World Bank chief economist Paul Romer, who described it as "the most sophisticated identification program in the world.
Changes have been made to laws such as the Companies Act, the Employee Pension Fund, the Contraband and Change Act, the TRAI Act and the Information Technology Act to increase By merging smaller operating organs, reducing their number from 40 to 12 Opposition parties such as TMC, BJD and RSP protested against these changes, saying that it was being done in the form of "back door entry".