TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Western Media’s Civilizational Insecurity Against India

    Western Media’s Civilizational Insecurity Against India Masked as Journalism

    Why Is Mamata Shielding Suspected Rohingyas?

    Mamata Defends Illegal Rohingyas Again, Questions BJP’s Crackdown on Infiltrators

    Israeli Businessman is Father, Russian Woman Faces Deportation

    Israeli Businessman Confirms Paternity, Fights Deportation of Daughters and Russian Partner Found in Karnataka Cave

    Pakistani Jasmeen Manzoor Shares Photos of Brutal Assault

    Pakistani Anchor Jasmeen Manzoor Shares Graphic Photos After Ex-Husband Beats Her Brutally

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    India Achieves 50% Non-Fossil Fuel Power Capacity

    India Achieves 50 pc Non-Fossil Fuel Power Capacity, Five Years Ahead of Schedule

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    WiseProfitWay.com reviews – Trading Times

    WiseProfitWay.com reviews – Trading Times

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    India-U.S. Set to Strike Javelin Deal

    India Seeks Javelin Missile Co-Production Deal with U.S. Under ‘Make in India’ Push

    India Set to Test ET-LDHCM: Hypersonic Missile

    India Tests Hypersonic Missile Aimed at Covering All of Pakistan and Key Chinese Military Zones

    India Conducts Successful Trial of Astra Missile

    India Conducts Successful Trial of Astra Missile BVRAAM Featuring Indigenous RF Seeker

    India Must Stay Vigilant as Turkey-Pakistan Axis Grows

    Pakistan and Turkey Deepen Anti-India Axis Through Defence, Radicalization Nexus

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    US-DEA Uncovers Canada–Pakistan–China Narco-Terror Nexus

    US-DEA Uncovers Canada–Pakistan–China Narco-Terror Nexus: A Global Hybrid Threat Emerges

    Pakistan Taliban’s Network in Bangladesh Busted

    Pakistan Taliban’s Terror Web Reaches Bangladesh: Two Arrested Over TTP Links

    Iran Travel Warning: Indian Nationals Asked to Reconsider Plans

    India Embassy Urges Caution: Avoid Non-Essential Travel to Iran Now

    Non-veg milk a red line in India-US trade talks. Here's why

    No Dairy Deal with US if Cows Are Fed Meat: India Stands Firm

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    NCERT Textbook Reveals Mughal Religious Intolerance

    Ruthless Babur, Violent Akbar, Destructive Aurangzeb: NCERT Textbook Reveals Mughal Religious Intolerance

    India Built Gardens Long Before Babur Dreamt of Charbagh

    Before the Mughals: India’s Civilisation Built Gardens Long Before Babur Dreamt of Charbaghs

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Echoes of the Cholas in Today’s Bharat

    Conqueror of the Seas: Rajendra Chola and the Rise of Naval Bharat

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Addiction Recovery in India: Breaking Stigmas and Building Support Systems

    Addiction Recovery in India: Breaking Stigmas and Building Support Systems

    How Under Armour’s Women’s Sports Shoes Are Reinventing Women’s Fitness Experience

    How Under Armour’s Women’s Sports Shoes Are Reinventing Women’s Fitness Experience

    How Digital Tools are Transforming Indian Football

    How Digital Tools are Transforming Indian Football

    resh Nipah Death in Kerala’s Palakkad Raises Statewide Alarm

    Nipah Scare Returns to Kerala: Second Death Leads to High Alert in Six Districts

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Western Media’s Civilizational Insecurity Against India

    Western Media’s Civilizational Insecurity Against India Masked as Journalism

    Why Is Mamata Shielding Suspected Rohingyas?

    Mamata Defends Illegal Rohingyas Again, Questions BJP’s Crackdown on Infiltrators

    Israeli Businessman is Father, Russian Woman Faces Deportation

    Israeli Businessman Confirms Paternity, Fights Deportation of Daughters and Russian Partner Found in Karnataka Cave

    Pakistani Jasmeen Manzoor Shares Photos of Brutal Assault

    Pakistani Anchor Jasmeen Manzoor Shares Graphic Photos After Ex-Husband Beats Her Brutally

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    India Achieves 50% Non-Fossil Fuel Power Capacity

    India Achieves 50 pc Non-Fossil Fuel Power Capacity, Five Years Ahead of Schedule

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    WiseProfitWay.com reviews – Trading Times

    WiseProfitWay.com reviews – Trading Times

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    India-U.S. Set to Strike Javelin Deal

    India Seeks Javelin Missile Co-Production Deal with U.S. Under ‘Make in India’ Push

    India Set to Test ET-LDHCM: Hypersonic Missile

    India Tests Hypersonic Missile Aimed at Covering All of Pakistan and Key Chinese Military Zones

    India Conducts Successful Trial of Astra Missile

    India Conducts Successful Trial of Astra Missile BVRAAM Featuring Indigenous RF Seeker

    India Must Stay Vigilant as Turkey-Pakistan Axis Grows

    Pakistan and Turkey Deepen Anti-India Axis Through Defence, Radicalization Nexus

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    US-DEA Uncovers Canada–Pakistan–China Narco-Terror Nexus

    US-DEA Uncovers Canada–Pakistan–China Narco-Terror Nexus: A Global Hybrid Threat Emerges

    Pakistan Taliban’s Network in Bangladesh Busted

    Pakistan Taliban’s Terror Web Reaches Bangladesh: Two Arrested Over TTP Links

    Iran Travel Warning: Indian Nationals Asked to Reconsider Plans

    India Embassy Urges Caution: Avoid Non-Essential Travel to Iran Now

    Non-veg milk a red line in India-US trade talks. Here's why

    No Dairy Deal with US if Cows Are Fed Meat: India Stands Firm

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    NCERT Textbook Reveals Mughal Religious Intolerance

    Ruthless Babur, Violent Akbar, Destructive Aurangzeb: NCERT Textbook Reveals Mughal Religious Intolerance

    India Built Gardens Long Before Babur Dreamt of Charbagh

    Before the Mughals: India’s Civilisation Built Gardens Long Before Babur Dreamt of Charbaghs

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Echoes of the Cholas in Today’s Bharat

    Conqueror of the Seas: Rajendra Chola and the Rise of Naval Bharat

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Addiction Recovery in India: Breaking Stigmas and Building Support Systems

    Addiction Recovery in India: Breaking Stigmas and Building Support Systems

    How Under Armour’s Women’s Sports Shoes Are Reinventing Women’s Fitness Experience

    How Under Armour’s Women’s Sports Shoes Are Reinventing Women’s Fitness Experience

    How Digital Tools are Transforming Indian Football

    How Digital Tools are Transforming Indian Football

    resh Nipah Death in Kerala’s Palakkad Raises Statewide Alarm

    Nipah Scare Returns to Kerala: Second Death Leads to High Alert in Six Districts

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

Modi’s new tax trap to squeeze the tax thieves dry

Bhushan Agrawal by Bhushan Agrawal
28 November 2016
in Economy
tax, msmes, loans

PC: PTI

Share on FacebookShare on X

Let’s try to decode and simplify the new Taxation Laws (Second Amendment) Bill, 2016. This amended law has been introduced as a “Money bill” today for clearance in the winter session of parliament. “Money Bills” if cleared in Lok Sabha become law, though they can be debated in the Rajya Sabha but the Rajya Sabha cannot reject a money bill if passed in the Lok Sabha and considering the govt’s strength and intentions in the lower house it is sure to get through this week itself.

So what does this Bill propose? But before that let’s understand the complete sequence of events and how it all started.

On 8th Nov 2016, PM Modi announced demonetization of Rs 500 and Rs 1000 notes, which caused people with black money to run helter-skelter and think of schemes of saving there ill-gotten wealth. Few thought that this is the end and to get rid of the old notes, threw them in rivers or burned them, some even donated them to the gods (and by an estimation Rs. 3 lakh crore is the resulting windfall gains to the govt or the people of the country), while others thought they are smarter and could still manage to get away, went to banks and got them deposited.

RelatedPosts

India Achieves 50 pc Non-Fossil Fuel Power Capacity, Five Years Ahead of Schedule

Not a Woman, Not from the South: This Key Factor Will Decide BJP’s Next President

AAP’s Anarchic Politics Embarrasses India on Global Stage: MEA Disowns Punjab CM’s Remarks

Load More

You see there are three categories of people, the first one are salaried people whose tax are deducted at source (TDS), the second ones are people who make loads of money but tell the government that are making just few cents and therefore pay very less or no tax and finally the third ones are those who make money via bribes or terror fundings or similar illicit means.

This trap is for the latter two.

People who have managed to get the money deposited in the banks, the govt will now start second level of scrutiny.

For people who acknowledge that they have deposited untaxed money and explain the source will have to pay almost 50 % tax and penalty on their undisclosed money. The “Pradhan mantri garib kalyan yojana” or PMGKY allows such people to pay 30 % as tax, 10 % as penalty and 33% of the taxed 30 % amount (which is effectively around 10 %) as Garib Kalyan cess, this totals to 50 %.

The govt does not stop here; the remaining 25 % of the undisclosed income has to be deposited for next 4 years without any interest, which will be used for projects in irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood of poors in a way to bring justice and equality in society.

Only 25 % will be available for immediate withdrawal. This deposit and disclosure scheme will be applicable to money deposited between 10th Nov to 30th Dec 2016.

So let’s assume there is a person with Rs. 4 lakh of undisclosed income who has deposited 500 & 1000 rupee notes in the bank. He will pay Rs. 1,20,000 as tax + Rs. 40,000 as penalty + Rs. 39,600 (approx.) as Garib Kalyan cess + Rs. 1,00,000 Interest free deposit to projects for poor (Locked for 4years)= Rs. 3,00,000 and only Rs. 1,00,000 for his immediate withdrawal.

For people whose money is found in raids by the IT dept. the taxes and penalties are more stringent. A flat 60 % tax plus a surcharge of 15 % which equals to total 75 % will be charged and if the IT officials based on the gravity of offence committed can charge an additional 10 % raising the total tax and penalty to around 85 %.

So let’s assume a person with Rs. 4 Lakh of undisclosed income have been raided by the IT officials he pays Rs. 2,40,000 as tax + Rs. 60,000 as surcharge + Rs. 40,000 additional penalty = Rs 3,40,000 and only Rs. 60,000 for his own withdrawal.

The current provisions of penalty on “under-reporting” of income at 50 % of the tax (which is you are earning Rs. 10,00,000 pa but disclosing only Rs. 8,00,000 pa) and “misreporting” 200 % of tax (which means you are earning Rs. 10,00,00 but disclosing no income) continues and will remain unchanged.

If one could recall earlier in the year the govt was able to mop up Rs. 65,250 crores under voluntary Income Disclosure Scheme (IDS) 2016.

The Modi government continues with its strategy of using sweet and bitter pill for rectifying the system plagued with corruption and fraud for past 7 decades. This may sound a bit Bollywood scripted, but the PM is the real life hero who extracts the ill-gotten wealth from the rich and distributes it to the poor like a filmy Amitabh Bachchan.

Tags: demonetisationModiNarendra Moditax
Share5TweetSend
Previous Post

The CNT Law Debate: Why can’t tribal laws be changed?

Next Post

Will the Church apologize to Indians for their brutality in Goa and Kerala?

Related Posts

AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress
Economy

AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

16 July 2025

In a world increasingly shaped by intelligent machines, July 16 has taken on a special significance. Marked as Artificial...

India Achieves 50% Non-Fossil Fuel Power Capacity
Economy

India Achieves 50 pc Non-Fossil Fuel Power Capacity, Five Years Ahead of Schedule

15 July 2025

In a major milestone for sustainable energy and climate action, India has achieved 50% of its total installed electricity...

Advantages of Using an EMI Calculator Before Applying for a Personal Loan
Finance

Advantages of Using an EMI Calculator Before Applying for a Personal Loan

14 July 2025

Thinking about applying for a personal loan? Before you hit that ‘Apply Now’ button, it’s wise to know what...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

Congress’s Rohith Vemula Bill: Caste Polarization Masquerading as Reform

Congress’s Rohith Vemula Bill: Caste Polarization Masquerading as Reform

00:07:33

Bhima Koregaon Won’t Be Repeated; Maharashtra’s Special Act to Wipe Out Urban Naxals.

00:06:06

Conqueror of the Seas: Rajendra Chola and the Rise of Naval Bharat

00:07:47

How UPI went global? Why Namibia Adopted It?

00:07:20

Stalin’s DMK Faces Heat Over Brutal Custodial Killings in Tamil Nadu

00:08:06
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap
MASHABLE IS A GLOBAL, MULTI-PLATFORM MEDIA AND ENTERTAINMENT COMPANY. FOR MORE QUERIES AND NEWS, CONTACT US AT info@mashablepartners.com


©2025 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2025 TFI Media Private Limited