Santosh Kumar Singh
(Sr. Microsoft Dynamics Axapta Technical,Mumbai)
" Be Good and Do Good "
Also, out of the black money held in the form of cash, it was never expected that the whole amount will come out as various ways and means were adopted by the black money hoarders to whiten their black money. Depositing the black money in other's Jan Dhan accounts was one such strategy.
Prior to the introduction of the demonetization policy, there was zero revelation of black money. However, after introduction of demonetization policy, several thousands of crores of black money will be unearthed even after giving another chance of surrendering the black money.
Let us encourage each other in sharing knowledge.
All the harassment and difficulties faced and being faced by the common man could have been avoided if our PM was really serious about what he wants to do. He is just a showman, an elected member who has been chosen as leader of the House but prefers to exhibit his oratory skills before his supporters and party men or before the NRIs and be happy with a large round of applause but is not ready to answer questions that are put up in Parliament.
Now I think I know why he chose Nov 08th to declare the demonetization; because he was flying to Japan the next day! I only hope that the monumental mismanagement does not lead to a monumental disaster!
'Not to know is bad; not to wish to know is worse'- African Proverb
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
Had I not gone a bit more into this matter even I would have got doubts.
My effort to know more in this regard made me come to know the following:
Had the amendment not been made so, the black money holders would have used the existing loophole in IT Act and rules and escaped by paying just the normal tax amounts by declaring the whole unaccounted amount in the current year income return under head 'unexplained'. That then would have been a real mockery of honest tax payers.That would have been a straight 'whitening' of the actual black money and govt itself would have unwittingly fallen into the trap of converting black money without any penalty.
In the days following after the demonetisation announcement, I heard some chartered accountant s and consultants openly asking people to show all those unaccounted income as current years income windfall. So it is this trick and loophole that is now plugged.
By this amendment, honest tax payer is not belittled or punished, but those with ignorance or mild avoidance are given mild penalty and given further immunity.
Those with higher amounts of undisclosed income, but are honest to admit their mistake are also given some lenience, but penalised higher as deterrent t prevent them further misadventure.
By this step, the govt has shown that they know how to plug the loopholes and make things tight for the black money holders and those who take the govt serious.
However one weakness here is that it gives further opportunity for the corrupt officials in the Income Tax department. Govt has to be alert on that front.
Say for example, in any private college or schools the teachers are signing for one amount but their pay is different and even educated one for the sake of survival helped the black money holders and now we may have to feel that it is occasion to eradicate the sin.
Nice to be in ISC and feel the difference.