Chidambara Rahasyam
Finance Minister P Chidambaram has revealed yesterday several secrets about Indian economy
The new Banking Cash Transaction Tax imposed this year has started yielding results by helping authorities keep a track on black money.
I can't disclose specific cases. We have detected a case in which a person operated from 200 accounts
Apart from keeping a track on black money, BCTT also garnered some revenue to the government
BCTT is helping tax department in keeping a trail on black money. The department recently decided to track cash withdrawal of slightly less than Rs 25,000 from non-saving accounts of banks on a single day. The move comes after tax departments received reports that some black money generators avoid giving any clue to the authorities by not falling under the net of BCTT by withdrawing slightly less than Rs 25,000 from banks on a single day.
Government is committed to its budget promise on simplifying tax laws and a bill is expected to early next year. (No! Not again!)
a panel headed by Rangarajan was looking into proposed rationalisation of duties on petroleum products
The suggestion to replace Income Tax by a Transaction Tax is an old one but cannot be implemented as there is no way to track all transactions
tribals are exempted from income tax for historical reasons. There is no proposal to withdraw it.
BCTT has already started yielding results with 10 parties involved in Hawala business being nabbed for black money generation through large withdrawals of cash from banks.
The new tax has enabled the tax department to trap seven parties involved in issuing bogus bills to dal and flour mills in Delhi to evade tax
Competitiveness, consolidation and convergence will drive the banking industry in the future
In future, competitiveness of the banks would depend on the service they provide and the service capability would largely be dependant on their size. Customers will demand all services under one roof
Credit is the driver of the economy