No Income tax in Modi’s India
Modi’s sudden announcement of demonetization of Rs 500 and Rs 1000 notes has stunned the whole country. While speaking recently, PM Modi made a statement appealing people of India to give him 50 days, and in return he promised to give them India they always desired.
So, How’s Modi India is going to look like? What Next? This is the million dollar question in today’s time.
According to reports, Income-tax may soon be abolished in Modi’s India
According to a report on CNN-NEWS 18, the Modi government could be thinking about abolishing the Income Tax completely and replacing them with a flat tax on banking transaction only.
As per the report, Arthakranti Prathisthan, a Pune-based Trust, has a set of proposals aimed at India’s ‘economic rejuvenation’, demonetisation being one.
Anil Bokil, who was largely in the news following the demonetisation of the currency notes, is the founder of the Trust and CNN-NEWS 18 reports that a trustee confirmed to it that the founder had met PM Modi for over 90 minutes a year ago where demonetisation was discussed.
Of the 5 proposals, the BJP-led government has already implemented the demonetisation of currency and what is most interesting now is the the top proposal, NEWS 18 states, and i.e. abolishing the Income Tax completely and replacing it with flat tax on banking transaction.
According to the proponents, the Banking Transaction Tax (BTT) would replace all direct and indirect taxes and would yield revenue greater than the current tax take, NEWS 18 states adding that it would also be less prone to corruption.
CNN-NEWS 18 also quoted Yamaji Malkar, Arthakranti trustee, as saying “A banking transaction tax would yield the nation about Rs 40 lakh crore, which is more than what the nation nets right now through the current system.”
The algorithm behind this move of demonetization of currencies and Introduction of Plastic money might be abolishing of Income tax and Introduction of flat tax on banking transaction only. This means one has to pay tax on the banking transaction.
This banking transaction tax system will abolish both direct and indirect tax but will be able to generate more tax than our Present tax systems. According to a financial expert, this new taxation method will generate Rs.40 lakh crore worth of income tax which is more than from what government is getting present tax system.
This system will not only ensure that there can’t be any tax Invaders but will boost country’s economy.
The biggest beneficiary of this system will be common middle class and government employees as their savings are going to high.
However,this is just a proposal in front of Modi government. Will Modi government implement it , only time can tell that.