Presentation made on Cash Restriction in Finance Act 2017 at District Centre Janakpuri CPE Study Circle of NIRC of ICAI

1. CA. PRAMOD JAIN
FCA, FCS, FCMA, LL.B, MIMA, DISA
CA. PRAMOD JAIN
FCA, FCS, FCMA, LL.B, MIMA, DISA
LUNAWAT & CO.
Chartered Accountants
LUNAWAT & CO.
Chartered Accountants
15th April 2017, Janakpuri15th April 2017, Janakpuri
CASH RESTRICTIONS
IN
FINANCE ACT 2017

2. Lunawat & Co.
CASH RESTRICTIONSCASH RESTRICTIONSCASH RESTRICTIONSCASH RESTRICTIONS
• Deduction u/s 80G restricted if donationDeduction u/s 80G restricted if donationDeduction u/s 80G restricted if donationDeduction u/s 80G restricted if donation
in cash exceedingin cash exceedingin cash exceedingin cash exceeding RsRsRsRs. 2000 by a person. 2000 by a person. 2000 by a person. 2000 by a person
(old 10k)(old 10k)(old 10k)(old 10k)
• Expenditure u/s 40A(3) / 40A(3A)Expenditure u/s 40A(3) / 40A(3A)Expenditure u/s 40A(3) / 40A(3A)Expenditure u/s 40A(3) / 40A(3A)
disallowed in payment made in cashdisallowed in payment made in cashdisallowed in payment made in cashdisallowed in payment made in cash
exceedingexceedingexceedingexceeding RsRsRsRs. 10000/. 10000/. 10000/. 10000/---- per person perper person perper person perper person per
day (Old 20k)day (Old 20k)day (Old 20k)day (Old 20k)
• Would Exp. Incurred in AY 2016Would Exp. Incurred in AY 2016Would Exp. Incurred in AY 2016Would Exp. Incurred in AY 2016----17,17,17,17,
payment made in 2017payment made in 2017payment made in 2017payment made in 2017----18 be covered?18 be covered?18 be covered?18 be covered?
LimitLimitLimitLimit RsRsRsRs. 20K or. 20K or. 20K or. 20K or RsRsRsRs. 10K. 10K. 10K. 10K

3. Lunawat & Co.
ASSETSASSETSASSETSASSETS
• Depreciation disallowed on cashDepreciation disallowed on cashDepreciation disallowed on cashDepreciation disallowed on cash
component of asset cost exceedingcomponent of asset cost exceedingcomponent of asset cost exceedingcomponent of asset cost exceeding
RsRsRsRs. 10000/. 10000/. 10000/. 10000/---- per person per day.per person per day.per person per day.per person per day.
• CGCGCGCG
• Deferred TaxDeferred TaxDeferred TaxDeferred Tax
• Books, MATBooks, MATBooks, MATBooks, MAT
• S. 35AD benefit not allowed onS. 35AD benefit not allowed onS. 35AD benefit not allowed onS. 35AD benefit not allowed on
expenditure incurred exceedingexpenditure incurred exceedingexpenditure incurred exceedingexpenditure incurred exceeding RsRsRsRs....
10000/10000/10000/10000/---- per person per dayper person per dayper person per dayper person per day

4. Lunawat & Co.
SECTION 269 STSECTION 269 STSECTION 269 STSECTION 269 ST
• No person to receive an amountNo person to receive an amountNo person to receive an amountNo person to receive an amount >>>> RsRsRsRs....
2 L in cash2 L in cash2 L in cash2 L in cash
• in aggregate from a person in ain aggregate from a person in ain aggregate from a person in ain aggregate from a person in a
day; orday; orday; orday; or
• in respect of a single transaction;in respect of a single transaction;in respect of a single transaction;in respect of a single transaction;
orororor
• in respect of transactions relatingin respect of transactions relatingin respect of transactions relatingin respect of transactions relating
to one event or occasion from ato one event or occasion from ato one event or occasion from ato one event or occasion from a
personpersonpersonperson

5. Lunawat & Co.
SECTION 269 STSECTION 269 STSECTION 269 STSECTION 269 ST
• Not to apply toNot to apply toNot to apply toNot to apply to
• Govt.,Govt.,Govt.,Govt.,
• Bank,Bank,Bank,Bank,
• Post Office Savings Bank or CoPost Office Savings Bank or CoPost Office Savings Bank or CoPost Office Savings Bank or Co----
operative Bank,operative Bank,operative Bank,operative Bank,
• S. 269SS transactionsS. 269SS transactionsS. 269SS transactionsS. 269SS transactions
• Penalty of equal amount u/s 271DAPenalty of equal amount u/s 271DAPenalty of equal amount u/s 271DAPenalty of equal amount u/s 271DA

6. Lunawat & Co.
DEMONETIZATION REPORTINGDEMONETIZATION REPORTINGDEMONETIZATION REPORTINGDEMONETIZATION REPORTING
• ITRsITRsITRsITRs
• Schedule IIISchedule IIISchedule IIISchedule III
• Auditors’ ReportAuditors’ ReportAuditors’ ReportAuditors’ Report

7. SCHEDULE IIISCHEDULE IIISCHEDULE IIISCHEDULE III
EveryEveryEveryEvery companycompanycompanycompany totototo disclosedisclosedisclosedisclose detailsdetailsdetailsdetails ofofofof SBNSBNSBNSBN
heldheldheldheld &&&& transacted duringtransacted duringtransacted duringtransacted during 8/11/20168/11/20168/11/20168/11/2016 totototo
30/12/201630/12/201630/12/201630/12/2016 . Auditor also to report. Auditor also to report. Auditor also to report. Auditor also to report
Lunawat & Co.
SBNsSBNsSBNsSBNs OtherOtherOtherOther
denominadenominadenominadenomina
tion notestion notestion notestion notes
TotalTotalTotalTotal
Closing cash in hand as on 8.11.2016Closing cash in hand as on 8.11.2016Closing cash in hand as on 8.11.2016Closing cash in hand as on 8.11.2016
(+) Permitted receipts(+) Permitted receipts(+) Permitted receipts(+) Permitted receipts
((((----) Permitted payments) Permitted payments) Permitted payments) Permitted payments
((((----) Amount deposited in Banks) Amount deposited in Banks) Amount deposited in Banks) Amount deposited in Banks
Closing cash in hand as onClosing cash in hand as onClosing cash in hand as onClosing cash in hand as on 30.12.201630.12.201630.12.201630.12.2016

8. CA. Pramod JainCA. Pramod JainCA. Pramod JainCA. Pramod Jain
pramodjain@lunawat.compramodjain@lunawat.compramodjain@lunawat.compramodjain@lunawat.com
+91 9811073867+91 9811073867+91 9811073867+91 9811073867
© 2017 CA. Pramod Jain, Lunawat & Co© 2017 CA. Pramod Jain, Lunawat & Co© 2017 CA. Pramod Jain, Lunawat & Co© 2017 CA. Pramod Jain, Lunawat & Co