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Cashless Economy

The increasing buzz about Digital India calls upon for the discussion about the cashless economy. Witnessing demonetization and overflowing notices from the IT department we can say that going cashless has become inevitable. With the talk about being cashless we need to understand the meaning of cashless. Dictionary defines cashless as ‘Operating without the need for cash’.  Though this definition includes the obsolete Barter system to be cashless we would concentrate on the trending digital equivalent for the legal tender.

By controlling the medium of exchange we can have a check on the money that finances illegal activities. It also restricts the tax evasion, curbing black money and corruption. By continuing arguments about the advantages and disadvantages of a cashless economy we can conclude that except for few discomfort and fall endured during transition, a cashless economy is most welcomed in the perspective of the nation’s well being.

In India implementation and enforcement has to be brought out by laws and enforcement. The Income Tax Act has created a disallowance under S.40 A (3) for cash payments. It states that any expenditure made for an sum exceeding Rs.10,000 will be disallowed. The term expenditure covers only revenue expenditure. However the new budget announced includes the provision for disallowing depreciation under Section 32 and capital expenditure under Section 35 AD when the cash paymen

Post By : rama valliammai On: 05-04-2017