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TMI BlogSection 269SS and 269T- increase limits and widen coverage to achieve purposeX X X X Extracts X X X X X X X X Extracts X X X X ..... Section 269SS and 269T- increase limits and widen coverage to achieve purpose X X X X Extracts X X X X X X X X Extracts X X X X ..... ell repayment by way of A/c payee cheques or draft, e- banking transfers etc. in certain circumstances. Limit must be increased: The limit of ₹ 20000/- was increased long ago w.e.f. 01.04.1989 that is more than 26 years ago. Even in proposed amendments vide the Finance Bill, 2015, these limits are kept unchanged. During last 26 years , due to inflation, the value of money has gone down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very much. To buy same things which What one could buy for ₹ 20K in 1989, one will require ₹ 1,50,000/- to 5,00,000/- or more now depending to the item intended to be bought. Cost inflation index for capital gain purposes for 1988-89 was 161 and for 2014-15 CII is 1024 so the increase in CII is 863. Simply speaking 1024 / 161 = 6.36 times. This taken into account only 75% of inflat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion if we consider full inflation it will be 8.48 times which is equal to about ₹ 1,70,000/-. We have also to consider that a man who could receive a loan of ₹ 20,000/- and purchase some set of things in 1989 now needs ₹ 1,70,000/- for same set of things considering CII. So naturally limit for taking loan should be increased. However, keeping in mind increase in banking facilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies the limit of ₹ 20000/- may be raised to at least ₹ 1,00,000/- for any loan and deposit and Rs. Two lakh for immovable property transactions. Coverage must be widened: Trade advances may also be covered by provisions of S.269SS and 269T. Farmers, though earning only agricultural income should also be covered for all loans, advances, property payments, trade advances and paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t etc. A person who is having wealth and substantial agricultural income must be brought into banking channels for all such payments and receipts. Any payment for agricultural produce exceeding ₹ 1,00,000/- by one person to any other person must be by A/c payee cheque/ draft or e-banking. Any person who has gross receipts from agriculture, of Rs.one lakh or more per month (twelve lakh pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r annum) must also be required to put through his deals through banking channels. No perceived relaxation under Constitution of India (COI) The Constitution, permit tax on agricultural income by state governments. Under Constitution of India also There is no perceived relaxation either about tax or other procedural requirements. Tax by State Government is to provide States a source of revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Government is not authorised to tax agricultural income, does not mean that it was intended that any amount of agricultural income should not be taxed. State governments and Central Government Can collaborate to determine, collect and share tax on agricultural income. Now it is high time for the same. X X X X Extracts X X X X X X X X Extracts X X X X
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