After Demonetisation on 8th november, also called surgical strike on black money many people have lost their sleep. People are looking at ways to convert their black money to white. They are all searching ways to minimise penalty and also avoid income tax.
Impact of Demonetisation on 122 crore Indians
Out of total 125 crore Indians, 122 crore are happy and enjoying. They are smiling for the simple reason that they don’t not to worry.
Their money is saved, and money they have in wallets to meet cash expenses can be deposited by 31st December 2016.
Only 3 crore population who has been evading taxes have lost their sleep.
In case of house wives and senior citizens, who have been keeping cash to meet emergency, can also also deposit this cash in their bank accounts. Please note that deposit, over and above Rs 2.5 lakhs will be income tax department scanner. 2.5 lakhs limit is full year ie 01/04/2016 to 31 st march 2017. All bank account holders, who will deposit cash over 2.5 lakhs will get income tax notice.
Impact of Demonetisation on Indian economy.
Bad and small term impact of Demonetisation:
Some economist are saying that our economy will be down by 2%. That may be correct, but still our GDP is in range of 5%-6% , this is far better that most of the economies of the world.
Good and Long term impact of Demonetisation
In long term, it will have mind blowing effect. People will be paying more taxes which, will be utilised for development of our infrastructure and Indian economy.
How to Convert black money to white:
Best way to convert black money to white is declare this as your income and pay income taxes accordingly.
We would not advice our readers to fall to agents who are promising to convert black money on commission basis. During last couple of days, we have been hearing lots of cases of fraud, where people have lost their crores to this agents. Most of them are taking advantage and running with these money.
Some of popular options of converting black money to white money are already closed by government. On 8th november itself, people were purchasing Gold, Foreign exchange, Rail and Air tickets. Our Government has been very active and is keeping close watch on these transactions.
Depositing cash in accounts of relatives accounts:
Such deposit will fall under Benami Act, and can result in imprisonment for 7 years.
Cash deposit and 200% penalty payable on money deposited during Demonetisation: Is it correct?
Any penalty under section 270A,of Income Tax Act can be levied only if there is an evasion of income tax.
You can deposit cash in your bank account and declare this deposit in your income tax return, and pay income tax accordingly. This income is now declared income.
In our opinion, there can be no penalty of 200% under section 270A of income tax act, since there is no escapement / or evasion of income tax.
How to complaint about black money
99% of we Indians are hardworking and honest. We prefer to work honestly and pay our income taxes honestly. It hurts
- When employers are paying salaries in advance in old currency.
- Or doctors around us, are earning incomes in cash and not paying income tax.
- Or bank manager around us is not disbursing new currency, but selling this to his business / bureaucrat friends.
We have getting lots of queries on how to report such incidents to government/ ModiJi/ or PMO or income tax office.
My friends, you can use twitter and twit to @pmoindia. They are very active and very fast. In last couple of days, we have seen any complaint and suggestions sent to PMOIndia is actioned very fast. Lots of our friends are satisfied with response and action taken by PMOIndia.
You can also write complaint/ suggestion at this link, http://pgportal.gov.in/pmocitizen/Grievancepmo.aspx
In case, you are not net Savy/ or are not able to use twitter, You can also write a letter to Income Tax office in your area.
Do let us know, your feedback about PMO India and black money.