NEW DELHI :This time government is on the rampage, FM made below points clear related money.
1) Money deposited in your bank account will be considered as a part of your income and liable for income tax. This was obvious but FM made it clear.
2) You will need to show income source of money deposited means if someone deposits money and pays income tax then also he/she will be liable for prosecution under money laundering and other laws.
What is this mean?
1) Anyone depositing more than 2.5lakh considering his account have 0 credits will need to pay income tax unless his income source is exempted.
2) If you already have income source and you deposited extra money means you will pay extra tax, unless you can show that this cash was from same income source.
3) Small depositor generally below 20K or Up to 50K need not to worry much but anyone depositing more than the 1-2lakh need to worry, unless it’s white cash and the source is known.
4) I was reading somewhere that government and Income Tax department putting huge data mining setup means govt will first go against large depositors who are routing money from various sources and will go for random sampling against small depositors like 1-2lakh.
Random sampling was used by Income-tax department in past also.
1) Obviously, this will flush out both black and white money which is out of banking system and just idle.
2) Even if this measure will not solve 100% black money problem but will push people to go for cashless and legal transactions as everyone will think that government can repeat this action in future also like after 4-5year.
3) Middle class & Lower class will continue their business as usual but the upper class which deals with black money will try to push the government to go soft and will use various means to undermine the government.
This is the testing time for government and political leadership.Fight between elite lobbies and their supporter in various systems Vs BJP top leadership will decide how much this step will be effective. The result of this fight will decide future of a nation.
4) In long term decision is good but will obviously harm elite class and help the middle class but a question is will middle and lower class show patience or will get influenced by the propaganda of elite lobbyist and their friends in various systems.