It refers to advertisements in most of newspapers by Income Tax Department (Central Board of Direct Taxes) on 29.01.2019 drawing attention of public towards illegal and punishable benami transactions. Such transactions can and must be checked through voluntary compliance by members of public through strict measures replacing cash-deals to banking-transactions, which may overflow public-exchequers. Study should be done on fiscal system of such countries which are pioneer in having cashless economy with Canada leading the list with score of 6.48 out of 10. Even China is far ahead of India at 6th place with score of 5.17.
Since property-deals practically have larger share of unaccounted money than that disclosed on papers, tax-laws should be simplified by providing a permanent voluntary-declaration scheme to declare as much income as possible from undisclosed sources on payment of maximum tax-slab of 30-percent. This will catch hold of those purchasing property from unaccounted cash when tax-persons will find Income from Undisclosed Sources in tax-returns of those selling the property. Circle-rates should be somewhat higher than prevailing market-rates and should be reviewed and fixed after every three months. Stamp-duty should be charged at just two-percent of such fixed circle-rates irrespective of the deal shown on papers. Capital-gain should be reduced to ten-percent instead of present twenty-percent. Idea should be to have such low rates of stamp-duty and capital-gain so that people may volunteer themselves for clean fully accounted property-deals which in turn will give much-much more revenue than at present.
Cash-withdrawal per month by an individual to rupees 96000 should be restored to be gradually reduced to rupees 48000 per month. Input-Tax-Credit ITC in GST-system may be retained only for traders abolishing it from manufacturing and service sector where unclaimed GST-invoices left by ordinary consumers are purchased by manufacturers for falsely claiming ITC as noted by authorities. Even ITC may not be allowed in service-sector by bringing service-sector under 12-perecent GST slab instead of present 18-percent. False ITC claims result in creation of unaccounted money which is then misused in benami transactions. Abolishing ITC in manufacturing and service sectors can result in dream-plan of having one single GST-slab of 12 or 15 percent abolishing 18-percent GST-slab altogether.
MADHU AGRAWAL