The limit will apply to single transactions, say purchase of a high-end watch or jewellery, or an event, such as payments to a wedding planner or property broker. Any donation above Rs 2,000 will have to be made by cheque or through electronic means.A new electoral bond that can be purchased from designated bank branches and can be used for making political donations by those who do not wish to disclose their identity. The bonds would have to be deposited in a political party's designated account and be redeemed within a stipulated time.There are disincentives for professionals and businessmen receiving cash payments beyond Rs 10,000. Currently, tax cases that are up to seven years old can be reopened.Cash donations of over Rs 10,000 to charitable institutions will no longer be eligible for deduction. Tax authorities will also be given powers to conduct surveys on premises where "activity for charitable purpose" is going on.

Source: Times of India February 01, 2017 20:48 UTC