Well placed sources have informed Indianmandarins that as part of the further crackdown on the black informal economy, the Government may scrap Income Tax from FY 2017-18 and replace it with Banking Transaction Tax (BTT). The financial year will be shifted to January- December instead of April-March. An announcement to this effect may be made on 30th December as a new year gift from the NaMo administration to black marketeers and their political terrorists’ patrons.
There is a strong possibility that from 1st April 2017, only two taxes – Direct Tax as BTT and Indirect Tax as GST – may be found on the statute book.
The NaMo administration is said to have calculated that the demonetization of Rs.500 and Rs.1000, along with the printing of new Rs 500 and 200 notes, would suck up Rs.1,42,0000 crores out of the market. This is said to dismantle the cash economy. Further actions in this regard would be taken by not allowing any cash transaction above Rs.10,000 without PAN or Aadhar.
At tandem, all salaries and business expenses would be required to be made in cheque or RTGS only to claim expenses in Income Tax. All cash transactions may be disallowed.This would be coupled with a Cash Limitation order that will allow the maximum cash allowance of Rs.50,000 per person.
As the cash economy is destroyed after a few months, the Rs.2,000 note will be demonetised with a limited notice. This will strangle the cash economy to death as there would be limited cash available in the market.
As some participants of the cash economy may try to shift to Gold, Gold coins manufacturing and imports will be banned.
A Gold and Precious Jewellery control order may be issued which will allow only 500 gram of Gold per person and a certain value of other jewelry. Relaxation will be given for existing jewelry if declared to authorities as per format. After a certain date, all undeclared Gold and jewelry will be liable to be taken over by the state.
A Property and Asset Declaration order will be issued where all property (Land, Buildings, and Flats) and shares will have to be declared to the authorities in a particular format. After a certain date, all undeclared property or shares will be liable to be taken over by the state.
That will complete the removal of black money from India, inform official sources.