Business Mantra News
Today, Finance Minister Mr. Arun Jaitely, introduced Income Tax Amendment Bill in Lok Sabha after three weeks of Demonetization of Rs.500 & Rs.1000 notes for which Crores of Indian people have been suffering since 10th November. The features of the bill introduced are as follows:
- 30% Tax on undisclosed Income + 10 % penalty + 33% surcharge on it which means 50% of undisclosed income.
- If Income Tax authorities find undisclosed income then 75% tax+ 10% penalty that means 85%.
- Of the disclosed part 25% shall remain as deposit with a lock-in period of 4 years
Surcharge shall be used for “Pradhan Mantri Garib Kalyan Yojna”
It means that the Government has acted under pressure by converting Demonetization Drive into another Voluntary Disclosure of Income Scheme.
What has prompted the Government for such step:
- May be the Government sees Indian Public going against the move in the near future, inspite of the fact that people have praised.
- May it be the pressure from within the Party MPs.
- May it be the pressure from the opposition parties
- May it be the failure of the demonetization drive, as soon as the new denomination notes reaches the Bank branches, it gets finished. Cash deposits in Banks may not stay long (For which PM himself has been patting his own back in public meetings saying that 5-6 Lakh Crores of cash has been deposited in banks)
- Or the Government got softer on Black Money hoarders, whereas the government had been acting very tough in the beginning.
Whatever be the reasons, but it seems that the Demonetization Drive has failed miserably or U Turn only due to the suffering of the 95% of the Indian.