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12/06/2019 - Indian Economy

iasparliament
June 12, 2019
3 months
983
7

What is meant by Banking cash transaction tax? Does its introduction is a step towards attaining the goals of digital economy? Comment (200 Words)

Refer - Financial Express

Enrich the answer from other sources, if the question demands.

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IAS Parliament 3 months

KEY POINTS

 Banking Cash transaction tax is a tax of 3-5 per cent on cash withdrawal of Rs 10 lakh in a year, a move to discourage cash usage in the economy and resultant black money. It is direct tax leviable on banking cash transactions.

It is not a good step towards attaining the goals of Digital economy

·        After GST, the government has a mine of information on people’s incomes and revenues which needs to be mined assiduously.

·        Then, there is the data the taxman gets from Operation Insight which is a linking of various databases on the purchases of jewellery, automobiles, property, credit card payments, airline tickets, etc.

·        With each bank account in the country mandatorily linked to a PAN, the government can always ask the banks to generate a list of cash withdrawals beyond a certain amount from banks.

·        Each PAN card has to be linked to an Aadhaar number, bank managers can be asked to conduct periodic scans to weed out fake PANs.

·        More important, the government claimed that, as a result of demonetisation, it had collected a wealth of information on people; and these can be used to track tax evaders easily rather than introducing BCTT.

·        At the time of demonetisation, the government claimed it had identified 23.5 lakh PANs that appeared suspicious  the cash deposited wasn’t in keeping with their known sources of income.

·        So another information source is clearly not needed to crackdown on black money.

 

Harshavardhan Chintam 3 months

Review sir 

IAS Parliament 3 months

Need better understanding. Give your opinion about role of BCTT in digital economy, provide arguments for it. Keep Writing.

Tapasvi 3 months

Plz review

IAS Parliament 3 months

Good answer. Keep Writing.

praneetha 3 months

kindly review 

IAS Parliament 3 months

Try to include about operation insight, GST and reforms and support your arguments by linking with BCTT. Keep Writing.

DIPANJAN HAZRA 3 months

Please review

IAS Parliament 3 months

Good answer. Working of BCTT is not needed. Give your opinion, stance and provide arguments for it. Keep Writing.

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