<h1>Finance Act 2017 Limits Cash Transactions, Encourages Digital Payments; Sections 269ST & 271DA Impose Penalties for Violations.</h1> The Finance Act, 2017 introduced measures to curb black money by limiting cash transactions and encouraging digital payments. New Sections 269ST and 271DA of the Income-tax Act restrict cash receipts of two lakh rupees or more, except via account payee cheque, bank draft, or electronic clearing. Violations incur penalties equal to the transaction amount. Exemptions apply to government and certain financial institutions. Cash capital expenditures over ten thousand rupees are ineligible for depreciation or deductions, and the cash limit for revenue expenses is reduced to ten thousand rupees. Political and charitable donations in cash above two thousand rupees are restricted for tax deductions.