Business Mantra News
It seems Demonetization drive has made most of Indians to think that government is considering them to be Tax Evaders and Black-money holders. Every now and then Government is issuing new directives, notifications and tax amendment bills in such a way that government is not working with proper planning and far-sightedness.
Primarily it was told that there is cap on cash withdrawals but one may deposit the cash balance with him if he has cash balance as per his books of accounts but according to social media reports few Bank managers are not accepting cash deposit of old notes more than one lakh. Till now there were heavy crowds in Bank Branches so people have not yet gone for cash deposits as deadline announced for depositing cash has 30th December 2016.
Various statements from Finance Minister himself and by Finance Secretary on behalf of the Government of India have a frightening effect on people who have genuine savings with them for Rs.2.00 to Rs.2.50 lakhs in the form of old notes, whereas these statements were meant for those people who divert their Black-money through other people’s accounts. But along with such people genuine crowd who want to deposit their own savings up to Rs. 2.00 -2.50 Lakhs are also afraid due to this fearful statement. Those genuine people do not even have tax consultants or tax professionals readily available for help.
Very heavy rates of Tax, surcharge and penalty have been announced. Now even if someone has legitimate and small savings and properly accounted cash and he deposits it in bank then there are chances that Income Tax Authorities would slap him with notices and fear of prosecutions and so on.
These Tax officials may frighten the assessee with tax, penalty, surcharge, prosecution if the reply of assessee is not accepted. Then this situation will give rise to inspector Raj which Modi ji wanted to end.
It seems that Modi Ji’s agenda of ‘Ease of Doing Business’ has been put on hold at last.