Finance Minister Arun Jaitley moved almost 40 amendments in the lower House on Tuesday inclusive of :
making Aadhaar mandatory for filing tax returns.,
making Aadhaar mandatory for applying for permanent account numbers (PAN).,
allowing payments by only non-cash modes such as cheques, bank drafts or electronic transfers for electoral trusts.,

Other amendment lowering Rs 3-lakh limit proposed for cash payments in the Budget for 2017-18 would be brought down to Rs 2 lakh as part of an unprecedented 40 amendments to the Finance Bill.

A few are aimed at rationalising tribunals by merging these to reduce the number to 12 from 40. Revenue Secretary Hasmukh Adhia tweeted the penalty for violation would be a fine equivalent to the amount of the transaction. The penalty would be paid by individuals or establishments receiving the payment. The proposal said the penalty would not be levied if a person could give sufficient reason for contravention. Fines would be levied only by joint commissioners of the income-tax (I-T) department.

The Rs 2-lakh limit applies to single transactions, those in aggregate from a person in a day, and to those relating to one event or occasion from a person but this provision does not apply to the government, banks and post offices.

Analysts said the fine was too high. “The penalty is huge when the system is yet to get used to the new rules and appropriate infrastructure yet to be created for individuals, small businesses and jewellers,” said Neeru Ahuja of Deloitte.