On November 8, 2016 the Indian government announced the demonetization of Rs. 500 and Rs. 1000 currency notes to curb corruption, terrorism, and black money. This led to a cash crunch that temporarily impacted sectors like agriculture and transportation that rely on cash transactions. In response, the government implemented new tax policies like the Goods and Services Tax (GST) and income tax amendments along with initiatives like Operation Clean Money to identify suspicious cash deposits post-demonetization. While demonetization and the new policies adversely impacted some sectors in the short-run, they are expected to increase transparency and tax revenues in the long run by moving India towards a less cash-based, digital economy.
The topic was written in July 2017 when GST was introduced . Several Act and laws were amended after that . Therefore it's upto the reader how he/she will utilize this write-up.
The document summarizes the impacts of India's 2016 demonetization policy, which removed Rs 500 and Rs 1000 banknotes from circulation. It led to short-term economic costs as people faced long bank lines. However, it increased bank deposits and tax collections. While most demonetized currency returned to banks, digital payments grew significantly. The policy had little impact on black money or terrorism as intended. Overall, demonetization accelerated India's shift to a digital economy but also caused economic disruption.
INDIA ASSAULTS CASH AGAIN, 100% FINE FOR CASH USE WILL BOOST BITCOIN PRICESteven Rhyner
The Indian {finance|financing|money} {minister|priest|preacher} Arun Jaitley {presented|provided|offered} the Union Budget to the parliament, India's {most important|essential|crucial} {financial|monetary|economic} {event|occasion} {expected|anticipated} with hopes {and|as well as|and also} {worries|concerns|fears}.
GST A Journey to Make India a Single Tax Economyijtsrd
Goods and Service tax is the Comprehensive levy on the goods and services at the stage of consumption. This paper will try to highlight the changes in out indirect structure that has finally resulted in the introduction of GST. This paper gives a detailed account of how we started with L.K. Jha Committee report in 1976 and ended up with 101st Constitutional Amendment Act that led to the unification of the Economy. The GST is also very important from the view of Cooperative federalism because the introduction of GST was not possible if the State and Central Government would not have forgo some of there power to tax under 7th schedule. The paper has tried to cover the whole journey of GST and the need for integrated tax structure in India. The paper will further evaluate the policy changes and its impact in past 3 years. Manisha Patawari | Dr. S. P. Srivastava "GST: A Journey to Make India a Single Tax Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31326.pdf Paper Url :https://www.ijtsrd.com/management/law-and-management/31326/gst-a-journey-to-make-india-a-single-tax-economy/manisha-patawari
The document summarizes a lecture on demonetization in India given on February 4, 2017. It provides background on demonetization, discusses the objectives and impacts of India's 2016 demonetization, and covers both views that it is a boon or bane. Specifically, it aims to curb black money, reduce corruption, and remove fake currency, but it also caused short-term economic difficulties and disproportionately impacted common citizens and small businesses. While it targeted illegal activities, some experts question how much black money it actually eradicated.
GST Registration is mandatory if limit of turnover is exceeded beyond prescribed limit. GST registration in India can be obtained on voluntary basis also if business turnover is not exceeded prescribed limit. As GST Consultant in India we suggest everyone doing business and planning to expand should have GST Registration which will also help to take further benefits from Government of India.
The document provides details of several prominent Indian economists and their educational qualifications and positions held. It includes the names of economists like Dr. Manmohan Singh, Dr. C. Rangarajan, Dr. Y.V. Reddy, Dr. Duvvuri Subbarao, Dr. Raghuram Rajan, Dr. Urjit Patel and Shaktikanta Das along with their educational achievements and awards received. It also provides a brief overview of the banking sector in India including future projections and the phases of development of the Indian banking system.
The topic was written in July 2017 when GST was introduced . Several Act and laws were amended after that . Therefore it's upto the reader how he/she will utilize this write-up.
The document summarizes the impacts of India's 2016 demonetization policy, which removed Rs 500 and Rs 1000 banknotes from circulation. It led to short-term economic costs as people faced long bank lines. However, it increased bank deposits and tax collections. While most demonetized currency returned to banks, digital payments grew significantly. The policy had little impact on black money or terrorism as intended. Overall, demonetization accelerated India's shift to a digital economy but also caused economic disruption.
INDIA ASSAULTS CASH AGAIN, 100% FINE FOR CASH USE WILL BOOST BITCOIN PRICESteven Rhyner
The Indian {finance|financing|money} {minister|priest|preacher} Arun Jaitley {presented|provided|offered} the Union Budget to the parliament, India's {most important|essential|crucial} {financial|monetary|economic} {event|occasion} {expected|anticipated} with hopes {and|as well as|and also} {worries|concerns|fears}.
GST A Journey to Make India a Single Tax Economyijtsrd
Goods and Service tax is the Comprehensive levy on the goods and services at the stage of consumption. This paper will try to highlight the changes in out indirect structure that has finally resulted in the introduction of GST. This paper gives a detailed account of how we started with L.K. Jha Committee report in 1976 and ended up with 101st Constitutional Amendment Act that led to the unification of the Economy. The GST is also very important from the view of Cooperative federalism because the introduction of GST was not possible if the State and Central Government would not have forgo some of there power to tax under 7th schedule. The paper has tried to cover the whole journey of GST and the need for integrated tax structure in India. The paper will further evaluate the policy changes and its impact in past 3 years. Manisha Patawari | Dr. S. P. Srivastava "GST: A Journey to Make India a Single Tax Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31326.pdf Paper Url :https://www.ijtsrd.com/management/law-and-management/31326/gst-a-journey-to-make-india-a-single-tax-economy/manisha-patawari
The document summarizes a lecture on demonetization in India given on February 4, 2017. It provides background on demonetization, discusses the objectives and impacts of India's 2016 demonetization, and covers both views that it is a boon or bane. Specifically, it aims to curb black money, reduce corruption, and remove fake currency, but it also caused short-term economic difficulties and disproportionately impacted common citizens and small businesses. While it targeted illegal activities, some experts question how much black money it actually eradicated.
GST Registration is mandatory if limit of turnover is exceeded beyond prescribed limit. GST registration in India can be obtained on voluntary basis also if business turnover is not exceeded prescribed limit. As GST Consultant in India we suggest everyone doing business and planning to expand should have GST Registration which will also help to take further benefits from Government of India.
The document provides details of several prominent Indian economists and their educational qualifications and positions held. It includes the names of economists like Dr. Manmohan Singh, Dr. C. Rangarajan, Dr. Y.V. Reddy, Dr. Duvvuri Subbarao, Dr. Raghuram Rajan, Dr. Urjit Patel and Shaktikanta Das along with their educational achievements and awards received. It also provides a brief overview of the banking sector in India including future projections and the phases of development of the Indian banking system.
This document describes a large scale scam involving chartered accountants in India. It alleges that CAs are intentionally not recording cash incomes, creating fake expense records, and altering documents to illegally avoid paying 60 crores in taxes. It estimates that eliminating these practices could bring 10 lakh crore annually to the government treasury. It calls for presenting evidence of this scam to political leaders to appoint a new ICAI president and implement permanent solutions to prevent future tax evasion.
This document provides an overview of the Goods and Services Tax (GST) implemented in India in 2017, including its basics, salient features, rationale, and impact on various sectors. Key points:
1) GST consolidates many indirect taxes into a single tax rate and aims to simplify taxation, increase revenue, and create a unified market. However, implementation challenges may arise.
2) GST consists of CGST, SGST, and IGST and is levied on the supply of goods and services. It is expected to boost the economy by reducing costs and complexity.
3) Sectors like education, FMCG, pharmaceuticals, healthcare, finance, and insurance will be impacted, with some
Determining Tax Literacy of Salaried Individuals - An Empirical AnalysisIOSR Journals
In personal financial planning, tax management plays a very important role. An individual should have thorough knowledge of various aspects of taxes and tax policies, which would help him to understand how much he can save even after paying taxes. Those people who have not taken any formal course on taxation finds it difficult to understand and comprehend the issues related to determination of tax liability, tax filling and tax saving. An attempt has been made through this paper to determine tax literacy level of salaried individuals based on various demographic and socio-economic factors. Findings of the study suggest that overall tax literacy level of respondents is not very high. The results suggest that level of tax literacy varies significantly among respondents. Also tax literacy level gets affected by gender, age, education, income, nature of employment and place of work whereas it does not get affected by geographic region. Findings of this paper suggest that government should adopt more aggressive approaches to educate taxpayers, thereby raising the level of tax literacy among them.
The document discusses the demonetization that was introduced in India in November 2016. It provides background on what demonetization means, details of India removing Rs. 500 and Rs. 1000 notes from circulation, the effects this has had, and both advantages and challenges of demonetization. It notes that demonetization aims to counter terrorism, reduce black money, and increase tax revenue but faces challenges like economic consequences seen in other countries and a need for tax system simplification.
Impact of Demonetization on Finance sector. Sandesh S Chimbalkar T.Y.BBI KSD'...Sandesh S Chimbalkar
A Research paper on Impact on Demonetization of Finance sector with regard to tax collections and perceptions of Chartered Accountants regarding the same.
Forensic Accounting in India (Future Prospects for Its Application)paperpublications3
Abstract: The main objective of this paper is to gauge white collar crimes, financial through forensic accounting and complexities of the corporate environment. Forensic Accounting is a combination of accounting, auditing and investigative skills to conduct an examination of company’s financial statements. This research article seeks to examine the meaning, nature validation and prospects in India. Forensic accounting seems to provide the needed solution to the problem of fraud and financial mis-management in corporate organizations. This article discusses the concept of forensic accounting, the need for it and its role in providing solution to the problem of fraud in corporate organizations.
1. The document discusses the impact of GST on the Indian economy, noting that it unifies indirect taxes and brings transparency.
2. Key impacts include increasing competitiveness by reducing costs, simplifying the tax structure, creating a unified economic zone in India, and potentially increasing tax revenues.
3. The rates under GST are 0%, 5%, 12%, 18%, and 28% for different goods and services. The document provides examples of how GST affects prices of items like footwear, cab rides, airline tickets, and more.
After recent large bank fraud cases in India, the government passed new laws and amended existing ones to strengthen fraud prevention and management. The Fugitive Economic Offenders Act allows courts to confiscate property of individuals who flee the country to avoid prosecution for economic crimes over 100 crore rupees. The Reserve Bank of India also implemented new identification requirements and databases to help detect fraud earlier and monitor suspicious individuals and companies. Banks and financial institutions must also improve internal controls, auditing, and staff training to prevent, detect, and manage fraud cases effectively.
This document provides an overview of the Goods and Services Tax (GST) implemented in India. It explains that GST aims to simplify the tax system by consolidating multiple taxes into a single tax. It also discusses input tax credits, who is liable to pay GST, the taxes it replaces, the different GST slabs, items covered and excluded, and the benefits of GST such as increased transparency, easier inter-state trade, and accelerated economic growth. The document concludes by stating that GST was implemented in India on July 1, 2017.
Black money refers to funds earned through illegal or underground economic activities that are unreported to tax authorities. Recipients of black money must hide, spend, or launder the funds to avoid detection. India is estimated to have a large amount of black money stored in Swiss bank accounts and within the domestic economy. Various government commissions and reports have estimated the total black money held in Swiss accounts and domestically to be in the range of 50-75 lakh crore rupees. Common sources of black money generation include tax evasion, hawala transactions, property transactions where the reported sale value is lower than actual value, and over-invoicing or under-invoicing of goods or services. The Indian government is taking steps
Demonetisation has been a radical, unprecedented step with short term costs and long term benefits. The liquidity squeeze was less severe than suggested by the headlines and has been easing since end-December 2016. A number of follow-up actions would minimize the costs and maximise the benefits of demonetisation. These include: fast, demand-driven, remonetisation; further tax reforms, including bringing land and real estate into the GST, reducing tax rates and stamp duties; and acting to allay anxieties about over-zealous tax administration. These actions would allow growth to return to trend in 2017-18, following a temporary decline in 2016-17.
Prime Minister of India Narendra Modi announced the demonetisation in an unscheduled live televised address at 20:00 Indian Standard Time (IST) on 8 November. In the announcement, Modi declared that use of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series would be invalid past midnight, and announced the issuance of new ₹500 and ₹2000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes.
Initially, the move received support from several bankers as well as from some international commentators. It was heavily criticised by members of the opposition parties, leading to debates in both houses of parliament and triggering organised protests against the government in several places across India. The move is considered to have reduced the country's GDP and industrial production. As the cash shortages grew in the weeks following the move, the demonetisation was heavily criticised by prominent economists and by world media.
The government’s goal (and rationale for the abrupt announcement) was to combat India's thriving underground economy on several fronts: eradicate counterfeit currency, fight tax evasion (only 1% of the population pays taxes), eliminate black money gotten from money laundering and terrorist-financing activities, and to promote a cashless economy. Individuals and entities with huge sums of black money gotten from parallel cash systems were forced to take their large-denomination notes to a bank, which was by law required to acquire tax information on them.
The move was heavily criticised as poorly planned and unfair, and was met with protests, litigation, and strikes. If the owner could not provide proof of making any tax payments on the cash, a penalty of 200% of the owed amount was imposed. Prime Minister Narendra Modi’s shock announcement had led to a rush in banks by people and business houses to exchange the old notes, besides sparking a crippling currency shortage
1. The document describes a major financial scam in India involving the blocking of government revenue from taxes.
2. It alleges that chartered accountants file false audit reports and financial statements for companies and partnerships, hiding hundreds of billions of rupees in actual revenues and profits from the government.
3. A student named Chirag Sawant proposes permanent solutions to prevent such scams and estimates that implementing them could direct over 10 trillion rupees annually to the government treasury.
This Document shows latest changing in banking and finance system in Indian economy which is helpful for current affair for student who preparing competitive exam. For more detail visit us https://goo.gl/Z3dDJO
The Distressing Pillar of Governance: Downsizing India’s Ministry of FinanceShantanu Basu
The document criticizes India's Ministry of Finance for being too large, centralized, and directionless. It argues the Ministry has become a tool for political subversion and stands in the way of development. The author calls for significantly downsizing the Ministry by separating budgeting and expenditure functions. Spending ministries would be given more autonomy over their budgets. This would promote greater fiscal responsibility and enable development progress led by states. Overall, the Ministry is seen as India's weak link and in need of drastic reform to refocus on its core functions rather than acting as the supreme authority over governance.
Originally posted on LinkedIn on 17th May 2020- https://www.linkedin.com/feed/update/urn:li:activity:6667787215978029056/
With the 5th and final tranche announced today, we have a fair idea about the composition of the INR 20 trillion Atma Nirbhar Bharat Economic Package.
To summarize, the package is majorly focused on providing easy loans to businesses to meet their short-term requirement for funds.
INR 11.8 Trillion of the package is aimed at infusing liquidity. Also, credit guarantees up to INR 4 Trillion have been announced to incentivize banks to lend money.
Liquidity Infusion & Credit Guarantee together constitute 75% of the package.
Major part of Direct Benefits worth INR 2.3 Trillion has already been utilized in the PM Garib Kalyan Yojana.
INR 40000 crores for additional MGNREGS spending is the only major step that will help in reviving demand.
Government has done enough on the supply-side measures. However, it needs to be complemented with fast pick-up in demand to ensure the economic recovery is fast. We hope that the Government will take more measures to revive demand in the economy.
Government has also announced much needed reforms in many sectors. The benefits will be seen only in the long-term.
Since, this is the final report we have created a comprehensive report for your perusal. Hope you find it useful.
18th feb.2014 daily global rice e newsletter by riceplus magazineRiceplus Magazine
The document summarizes recent news articles about rice production and policies in Thailand and the Philippines. It discusses legal issues around the Philippines' rice import restrictions and investigations into financial losses from Thailand's rice subsidy program. The National Anti-Corruption Commission in Thailand plans to charge Prime Minister Yingluck Shinawatra for negligence related to the rice subsidy scheme. The document also examines challenges in preventing misuse of rice import licenses in Indonesia due to unclear tariff classifications.
This document contains information about an advocate and tax consultant located in Chennai, India along with their contact details. It then provides summaries of India's previous demonetization efforts in 1946 and 1978. It discusses the 2011 Supreme Court case directing an investigation into black money and steps taken between 2011-2016 to address the issue. The document also contains statistics on Jan Dhan bank accounts and concludes with potential tax implications of the 2016 demonetization.
This document summarizes key aspects of the Indian government's demonetization efforts in 1946, 1978, and 2016 as well as proposed amendments to tax laws relating to undisclosed income and assets.
The summaries cover: the limited impact of the 1946 demonetization which mostly resulted in currency exchanges; key details and impacts of the 1978 demonetization; timelines and public reactions surrounding the November 2016 demonetization; proposed amendments increasing tax rates on undisclosed income to 60% and introducing new penalties; and details of the Pradhan Mantri Garib Kalyan Yojana 2016 allowing declaration of undisclosed assets by paying tax at 49.9%.
This document describes a large scale scam involving chartered accountants in India. It alleges that CAs are intentionally not recording cash incomes, creating fake expense records, and altering documents to illegally avoid paying 60 crores in taxes. It estimates that eliminating these practices could bring 10 lakh crore annually to the government treasury. It calls for presenting evidence of this scam to political leaders to appoint a new ICAI president and implement permanent solutions to prevent future tax evasion.
This document provides an overview of the Goods and Services Tax (GST) implemented in India in 2017, including its basics, salient features, rationale, and impact on various sectors. Key points:
1) GST consolidates many indirect taxes into a single tax rate and aims to simplify taxation, increase revenue, and create a unified market. However, implementation challenges may arise.
2) GST consists of CGST, SGST, and IGST and is levied on the supply of goods and services. It is expected to boost the economy by reducing costs and complexity.
3) Sectors like education, FMCG, pharmaceuticals, healthcare, finance, and insurance will be impacted, with some
Determining Tax Literacy of Salaried Individuals - An Empirical AnalysisIOSR Journals
In personal financial planning, tax management plays a very important role. An individual should have thorough knowledge of various aspects of taxes and tax policies, which would help him to understand how much he can save even after paying taxes. Those people who have not taken any formal course on taxation finds it difficult to understand and comprehend the issues related to determination of tax liability, tax filling and tax saving. An attempt has been made through this paper to determine tax literacy level of salaried individuals based on various demographic and socio-economic factors. Findings of the study suggest that overall tax literacy level of respondents is not very high. The results suggest that level of tax literacy varies significantly among respondents. Also tax literacy level gets affected by gender, age, education, income, nature of employment and place of work whereas it does not get affected by geographic region. Findings of this paper suggest that government should adopt more aggressive approaches to educate taxpayers, thereby raising the level of tax literacy among them.
The document discusses the demonetization that was introduced in India in November 2016. It provides background on what demonetization means, details of India removing Rs. 500 and Rs. 1000 notes from circulation, the effects this has had, and both advantages and challenges of demonetization. It notes that demonetization aims to counter terrorism, reduce black money, and increase tax revenue but faces challenges like economic consequences seen in other countries and a need for tax system simplification.
Impact of Demonetization on Finance sector. Sandesh S Chimbalkar T.Y.BBI KSD'...Sandesh S Chimbalkar
A Research paper on Impact on Demonetization of Finance sector with regard to tax collections and perceptions of Chartered Accountants regarding the same.
Forensic Accounting in India (Future Prospects for Its Application)paperpublications3
Abstract: The main objective of this paper is to gauge white collar crimes, financial through forensic accounting and complexities of the corporate environment. Forensic Accounting is a combination of accounting, auditing and investigative skills to conduct an examination of company’s financial statements. This research article seeks to examine the meaning, nature validation and prospects in India. Forensic accounting seems to provide the needed solution to the problem of fraud and financial mis-management in corporate organizations. This article discusses the concept of forensic accounting, the need for it and its role in providing solution to the problem of fraud in corporate organizations.
1. The document discusses the impact of GST on the Indian economy, noting that it unifies indirect taxes and brings transparency.
2. Key impacts include increasing competitiveness by reducing costs, simplifying the tax structure, creating a unified economic zone in India, and potentially increasing tax revenues.
3. The rates under GST are 0%, 5%, 12%, 18%, and 28% for different goods and services. The document provides examples of how GST affects prices of items like footwear, cab rides, airline tickets, and more.
After recent large bank fraud cases in India, the government passed new laws and amended existing ones to strengthen fraud prevention and management. The Fugitive Economic Offenders Act allows courts to confiscate property of individuals who flee the country to avoid prosecution for economic crimes over 100 crore rupees. The Reserve Bank of India also implemented new identification requirements and databases to help detect fraud earlier and monitor suspicious individuals and companies. Banks and financial institutions must also improve internal controls, auditing, and staff training to prevent, detect, and manage fraud cases effectively.
This document provides an overview of the Goods and Services Tax (GST) implemented in India. It explains that GST aims to simplify the tax system by consolidating multiple taxes into a single tax. It also discusses input tax credits, who is liable to pay GST, the taxes it replaces, the different GST slabs, items covered and excluded, and the benefits of GST such as increased transparency, easier inter-state trade, and accelerated economic growth. The document concludes by stating that GST was implemented in India on July 1, 2017.
Black money refers to funds earned through illegal or underground economic activities that are unreported to tax authorities. Recipients of black money must hide, spend, or launder the funds to avoid detection. India is estimated to have a large amount of black money stored in Swiss bank accounts and within the domestic economy. Various government commissions and reports have estimated the total black money held in Swiss accounts and domestically to be in the range of 50-75 lakh crore rupees. Common sources of black money generation include tax evasion, hawala transactions, property transactions where the reported sale value is lower than actual value, and over-invoicing or under-invoicing of goods or services. The Indian government is taking steps
Demonetisation has been a radical, unprecedented step with short term costs and long term benefits. The liquidity squeeze was less severe than suggested by the headlines and has been easing since end-December 2016. A number of follow-up actions would minimize the costs and maximise the benefits of demonetisation. These include: fast, demand-driven, remonetisation; further tax reforms, including bringing land and real estate into the GST, reducing tax rates and stamp duties; and acting to allay anxieties about over-zealous tax administration. These actions would allow growth to return to trend in 2017-18, following a temporary decline in 2016-17.
Prime Minister of India Narendra Modi announced the demonetisation in an unscheduled live televised address at 20:00 Indian Standard Time (IST) on 8 November. In the announcement, Modi declared that use of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series would be invalid past midnight, and announced the issuance of new ₹500 and ₹2000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes.
Initially, the move received support from several bankers as well as from some international commentators. It was heavily criticised by members of the opposition parties, leading to debates in both houses of parliament and triggering organised protests against the government in several places across India. The move is considered to have reduced the country's GDP and industrial production. As the cash shortages grew in the weeks following the move, the demonetisation was heavily criticised by prominent economists and by world media.
The government’s goal (and rationale for the abrupt announcement) was to combat India's thriving underground economy on several fronts: eradicate counterfeit currency, fight tax evasion (only 1% of the population pays taxes), eliminate black money gotten from money laundering and terrorist-financing activities, and to promote a cashless economy. Individuals and entities with huge sums of black money gotten from parallel cash systems were forced to take their large-denomination notes to a bank, which was by law required to acquire tax information on them.
The move was heavily criticised as poorly planned and unfair, and was met with protests, litigation, and strikes. If the owner could not provide proof of making any tax payments on the cash, a penalty of 200% of the owed amount was imposed. Prime Minister Narendra Modi’s shock announcement had led to a rush in banks by people and business houses to exchange the old notes, besides sparking a crippling currency shortage
1. The document describes a major financial scam in India involving the blocking of government revenue from taxes.
2. It alleges that chartered accountants file false audit reports and financial statements for companies and partnerships, hiding hundreds of billions of rupees in actual revenues and profits from the government.
3. A student named Chirag Sawant proposes permanent solutions to prevent such scams and estimates that implementing them could direct over 10 trillion rupees annually to the government treasury.
This Document shows latest changing in banking and finance system in Indian economy which is helpful for current affair for student who preparing competitive exam. For more detail visit us https://goo.gl/Z3dDJO
The Distressing Pillar of Governance: Downsizing India’s Ministry of FinanceShantanu Basu
The document criticizes India's Ministry of Finance for being too large, centralized, and directionless. It argues the Ministry has become a tool for political subversion and stands in the way of development. The author calls for significantly downsizing the Ministry by separating budgeting and expenditure functions. Spending ministries would be given more autonomy over their budgets. This would promote greater fiscal responsibility and enable development progress led by states. Overall, the Ministry is seen as India's weak link and in need of drastic reform to refocus on its core functions rather than acting as the supreme authority over governance.
Originally posted on LinkedIn on 17th May 2020- https://www.linkedin.com/feed/update/urn:li:activity:6667787215978029056/
With the 5th and final tranche announced today, we have a fair idea about the composition of the INR 20 trillion Atma Nirbhar Bharat Economic Package.
To summarize, the package is majorly focused on providing easy loans to businesses to meet their short-term requirement for funds.
INR 11.8 Trillion of the package is aimed at infusing liquidity. Also, credit guarantees up to INR 4 Trillion have been announced to incentivize banks to lend money.
Liquidity Infusion & Credit Guarantee together constitute 75% of the package.
Major part of Direct Benefits worth INR 2.3 Trillion has already been utilized in the PM Garib Kalyan Yojana.
INR 40000 crores for additional MGNREGS spending is the only major step that will help in reviving demand.
Government has done enough on the supply-side measures. However, it needs to be complemented with fast pick-up in demand to ensure the economic recovery is fast. We hope that the Government will take more measures to revive demand in the economy.
Government has also announced much needed reforms in many sectors. The benefits will be seen only in the long-term.
Since, this is the final report we have created a comprehensive report for your perusal. Hope you find it useful.
18th feb.2014 daily global rice e newsletter by riceplus magazineRiceplus Magazine
The document summarizes recent news articles about rice production and policies in Thailand and the Philippines. It discusses legal issues around the Philippines' rice import restrictions and investigations into financial losses from Thailand's rice subsidy program. The National Anti-Corruption Commission in Thailand plans to charge Prime Minister Yingluck Shinawatra for negligence related to the rice subsidy scheme. The document also examines challenges in preventing misuse of rice import licenses in Indonesia due to unclear tariff classifications.
This document contains information about an advocate and tax consultant located in Chennai, India along with their contact details. It then provides summaries of India's previous demonetization efforts in 1946 and 1978. It discusses the 2011 Supreme Court case directing an investigation into black money and steps taken between 2011-2016 to address the issue. The document also contains statistics on Jan Dhan bank accounts and concludes with potential tax implications of the 2016 demonetization.
This document summarizes key aspects of the Indian government's demonetization efforts in 1946, 1978, and 2016 as well as proposed amendments to tax laws relating to undisclosed income and assets.
The summaries cover: the limited impact of the 1946 demonetization which mostly resulted in currency exchanges; key details and impacts of the 1978 demonetization; timelines and public reactions surrounding the November 2016 demonetization; proposed amendments increasing tax rates on undisclosed income to 60% and introducing new penalties; and details of the Pradhan Mantri Garib Kalyan Yojana 2016 allowing declaration of undisclosed assets by paying tax at 49.9%.
Regulation to curb black money and benami transactionJyoti Mishra
The document summarizes regulations to curb black money and benami transactions in India. It defines black money as income on which taxes have not been paid and benami transactions as transactions done without official documentation between two parties in trust. Sources of black money are identified as income from illegal activities and tax evasion on legal income. Regulations discussed include the Black Money Act, FATCA, demonetization, increased reporting requirements, and the Benami Transactions Prohibition Amendment Act, which defines benami transactions and outlines penalties for participation including imprisonment and fines based on the fair market value of properties. The amendment aims to curb black money held overseas and domestically.
Income tax is generally considered as Complicated subjects, so in this HAND BOOK we covered entire syllabus in such a manner in easiest language that student find it intresting.
Tax fraud occurs when an individual or entity underreports income or overstates deductions on a tax return to reduce the amount of taxes owed. In India, major areas of tax fraud include falsification of invoices, unreported income, and bribery of tax officials. The Indian government estimates an annual loss of 14 trillion rupees from tax evasion. Recent government efforts to curb fraud include new laws targeting undisclosed foreign assets, a proposed nationwide goods and services tax, and increased use of technology in tax administration. However, tax fraud remains a significant problem in India due to complex tax laws, weak enforcement, and corruption. Simplification of the tax system and improved monitoring are needed to further reduce the prevalence of tax evasion.
The document discusses India's demonetization of 500 and 1000 rupee banknotes in 2016. It provides background on what demonetization is, explains what happened on November 8th 2016, and discusses the objectives, impacts, and experts' views on the policy. The key objectives of demonetization included curbing black money, corruption, and moving toward a cashless economy. It had both positive impacts like eliminating fake currency and pushing digitization, and negative impacts such as cash shortages and effects on small businesses and rural areas. Experts had mixed views on the long-term economic effects.
This document provides an overview of the history and legal framework of income tax in India. Some key points:
- Income tax was first introduced in India in 1860 and the current Income Tax Act came into effect in 1962, replacing previous acts from 1886, 1918 and 1922.
- The legal framework includes the Income Tax Act of 1961, the annual Finance Act, Income Tax Rules framed by CBDT, judicial decisions, and CBDT circulars/notifications.
- Key concepts discussed include the difference between previous year (when income is earned) and assessment year (when income is taxed), definitions of person, assessee, deemed assessee, and assessment.
- Principles of taxation discussed are
A Glance to GST Calculation in India | GST KeeperGSTKeeper
This presentation takes you to the overview of GST calculation in India. Know the federal nature of India, and the process of GST calculation in India.
Key Note Address delivered at "National Seminar on Demonetisation" organised by SNGIMS, Coimbatore on Feb 20, 2017. The address focused on how the recent demonetisation in India is a turnkey step in the right direction, which has to be supported by a whole ecosystem of preventive & punitive strategies with 'transaction transparency aided by the digitisation' as the central theme to achieve its desired objectives.
The document discusses various aspects of taxation in India including tax evasion, tax avoidance, and the role of tax administration.
It defines tax evasion as illegally reducing one's tax burden by underreporting income or overstating deductions/expenses. Tax avoidance uses legal tax deductions and exemptions to minimize tax liability. Penalties for tax evasion range from 100-300% of evaded taxes.
The document also summarizes key provisions of the Income Tax Act related to deductions that can help taxpayers lower their taxable income such as sections 80C, 80D, and double taxation avoidance agreements. It notes direct tax collections have increased after demonetization as the number of taxpayers has risen from 3 crore
INCOME DECLARATION SCHEME A time to come cleanNeha Sharma
The IDS scheme announced by the government is open till 30th September, 2016. It is an important opportunity and the government has committed to not to seek any details or source of money earned and assets created once disclosed in terms of the scheme.
The document discusses several key aspects of public finance in India, including:
1) Constitutional powers of taxation are derived from the Indian Constitution, which allocates taxing powers between the central and state governments.
2) Recent tax reforms committees, such as the Raja Chelliah Committee and Vijay Kelkar Committee, made recommendations to simplify and rationalize India's tax system.
3) Canons of taxation provide principles for tax systems, including equity, certainty, and productivity.
4) Public finance encompasses a government's revenue sources like taxes, its expenditures on areas like infrastructure, and its budget and debt levels. Public expenditure aims to maximize social benefits within budget constraints.
Introductions to Indirect Tax - Types, Structure, Constitutional Powers, ReformsSundar B N
Constitutional Powers of Taxation
Comparison between Old and New Tax stream
Structure of Indian Tax System
Different Types of Taxes
Taxes under Indirect Tax Family in India
Recent Tax Reforms Committees and its Recommendations
Canons of Taxation
Public Finance
Public Expenditure
Public Revenue
Welfare State
Fiscal Discipline
To study the awareness amongst teaching and non-teaching staff of MGM regardi...Shaikh Awaiz
This document discusses the history and organizational structure of income tax administration in India. It outlines key objectives of income taxation such as raising funds for government expenditure, redistributing wealth, and promoting economic growth. It also lists some prominent insurance companies in India and provides details of tax benefits available under various sections of the Income Tax Act for life insurance policies from LIC.
Research paper: Analysis of the Demonetization and GST Impact on the Indian Economy. Demonetisation and the Goods and Services Tax (GST) are the two major headwinds that held back India's economic growth last year, former RBI Governor Raghuram Rajan has said, asserting that the current seven per cent growth rate is not enough to meet the country's needs.
This document summarizes key points from India's Union Budget for 2017-2018. It outlines changes to individual and corporate income tax rates, including tax rebates for middle-class individuals and a higher surcharge for high-income earners. It also discusses revisions to capital gains tax and services charges, as well as changes to excise duties on tobacco and cash transaction limits. The budget aims to boost small businesses and encourage tax compliance, while continuing to roll out the new Goods and Services Tax nationwide.
Personal financial management involves managing an individual's or family's monetary resources over time. It includes income from employment, savings and investments, expenses, taxes, and planning for life events. Effective tax planning can help reduce tax liability by taking advantage of exemptions, deductions, rebates and allowances within the law. It involves organizing one's finances to structure income and expenses to minimize taxes owed. Proper tax planning ensures taxes are paid on time while maximizing wealth accumulation for life goals and financial security.
Everything you want to known about GST is here and you can use it for increase your knowledge as well as make your own project with the material provided here.
Brief History of Indian Income Tax – Legal Frame Work – Types of Taxes - Cannons of Taxation – Important Definitions: Assessment, Assessment Year, Previous Year (Including Exceptions), Assessee, Person, Income, Casual Income, Gross Total Income, Total Income, Agricultural Income (Including Scheme of Partial Integration – Theory only) – Scheme of Taxation. Meaning and Classification of Capital & Revenue. Income Tax Authorities: Powers & Functions of CBDT, CIT & A.O.
Budget analysis on tax reforms of Union budget 2017Meher Pranav
The document discusses key aspects of the Indian budget and tax system. It outlines different tax brackets and rates for individual income levels, introduces a 10% surcharge for those earning between 50 lakh and 1 crore rupees and 15% surcharge for over 1 crore rupees. It also reduces the tax burden for small businesses with annual turnover less than 50 crore rupees, restricts cash transactions over 10,000 rupees, increases excise duty on tobacco, and extends tax rebates for new home buyers over the first 3 of 7 years.
Similar to Demonetisation + GST Law + Income tax = combating black money and demonetisation Impact on Indian Economics: An Overview (20)
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...mayaclinic18
Whatsapp (+971581248768) Buy Abortion Pills In Dubai/ Qatar/Kuwait/Doha/Abu Dhabi/Alain/RAK City/Satwa/Al Ain/Abortion Pills For Sale In Qatar, Doha. Abu az Zuluf. Abu Thaylah. Ad Dawhah al Jadidah. Al Arish, Al Bida ash Sharqiyah, Al Ghanim, Al Ghuwariyah, Qatari, Abu Dhabi, Dubai.. WHATSAPP +971)581248768 Abortion Pills / Cytotec Tablets Available in Dubai, Sharjah, Abudhabi, Ajman, Alain, Fujeira, Ras Al Khaima, Umm Al Quwain., UAE, buy cytotec in Dubai– Where I can buy abortion pills in Dubai,+971582071918where I can buy abortion pills in Abudhabi +971)581248768 , where I can buy abortion pills in Sharjah,+97158207191 8where I can buy abortion pills in Ajman, +971)581248768 where I can buy abortion pills in Umm al Quwain +971)581248768 , where I can buy abortion pills in Fujairah +971)581248768 , where I can buy abortion pills in Ras al Khaimah +971)581248768 , where I can buy abortion pills in Alain+971)581248768 , where I can buy abortion pills in UAE +971)581248768 we are providing cytotec 200mg abortion pill in dubai, uae.Medication abortion offers an alternative to Surgical Abortion for women in the early weeks of pregnancy. Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Applying the Global Internal Audit Standards_AIS.pdf
Demonetisation + GST Law + Income tax = combating black money and demonetisation Impact on Indian Economics: An Overview
1. VISHAL MALPANI 1
Demonetisation + GST Law + Income tax = combating black money and
demonetisation Impact on Indian Economics: An Overview
On 8th November, 2016, the Government had announced for demonetisation of 500 and 1000
denomination bank note from the Indian economy by terminating their legal tender, in order to
combat the corruption, terrorism, and smuggling and flush out the black money from the economy
and to move towards digital economy to bring transparency in the system. This fierce move had
received a lot of criticized by opposition parties but it was also acknowledged as a great move by
general public at large.
Demonetisation is not the only step of government to curb corruption and black money, GST and
new amendments in Income tax will be another steps towards it, if Demonetisation was bad for
black money, GST and new amendments in Income tax will be much worse for it.
This Article describes the correlation between the Indian Taxation and GST law with the
Demonetisation for moving towards the cashless economy and demonetisation impact on the Indian
Economy in an easy and understandable manner.
Demonetisation
GST Law
Income Tax
2. VISHAL MALPANI 2
Introduction:
Demonetisation is the act of stripping a currency unit from its status as legal tender, by replacing the
old currency note with a new currency unit.
This was not first time that world was witnessing the demonetisation, previously also many other
countries like Zimababwe, North Korea, Myammar, Nigeria and Ghana had practiced this act. Even
India has done this before, In 1946, all 1,000 and 10,000 rupee notes were recalled. In 1978, 1,000,
5,000, and 10,000 rupee notes were demonetized.
In terms of value, the annual report of reserve bank of India of 31st March,2016 specifies that total
bank notes in circulation valued to ₹16.42 trillion of which nearly 86.4% were 500 and 1000
banknotes.
A well Planned Initiative
Demonetisation so called the surgical strikes on the black money holder was a well-planned action
for withdrawal of high denomination currency notes, Firstly the “Jan Dhan Scheme” to open the Bank
account of Millions of people and linking with the Aadhar card, then declaration of IDS ( Income
declaration scheme) and finally the scrapping of currency notes, so that general public should not
face problem of not having the bank accounts for depositing old currency note and should not blame
the government about not giving any chance to self-declare the black money
Income tax:
1) Operation Clean Money: issuing of Income tax notices:
After demonetisation general public was forced to deposit their 500 and 1000 high denomination
currency note in to their bank accounts , and IT department has asked from different banks about
details of deposit made by the depositor in the bank account post demonetisation and after going
through deposit records It has come to notice of IT department that many deposits are suspicious
which includes the deposit more than 5 Lakh, money had been deposited in dormant account and in
some cases cash had been put in account by unknown non account holders.
The government has launched operation clean Money under which The income tax department has
identified 18 Lakh people who have the suspicious cash deposit post demonetisation, department is
sending the emails and SMSs seeking explanation about the sources of funds and these ‘suspicious”
Account holders have to register themselves and explain sources of fund to IT department through
Jan Dhan
Scheme
IDS (Income Tax
Declaration
Scheme)
Demonetisation
3. VISHAL MALPANI 3
Online and need not to go IT offices within 10 days of email or SMSs in case no reply from the IT
department will inspect the suspicious deposit.
2) Pradhan Mantri Garib Kalyan Yoajan,2016
Demonetisation were having good impact by nullifying bulk of the black market’s currency and had
an immediate stoppage of all sorts of illegal activities. Even though the black money can be kept in
other forms also like the immovable property, but at least due to demonetisation liquid black money
is getting out of system and circulation. But black money holder have used different type of medium
by every crook or by unfair means to generate the same black money in the new currency notes
which they had in the old expired currency notes, and even many of the persons have succeeded in
this conversion. After witnessing these all, the Modi Government has decided to form the Pradhan
Mantri Garib Kalyan Yoajan,2016, Main features are :
Declaration can be made by any person in respect of undisclosed income in form of cash or
deposit in an accounts with the bank or with post office or specified entity.
Tax Surcharge & Penalty totaling upto 49.90% of the undisclosed income to be paid.
Mandatory deposit of 25% of the undisclosed income to be made in the Prdhan Mantri Garibo
Kalyan Deposit Scheme, 2016.
Deposit are interest free and have lock-in-period of 4 years.
Total confidentiality is ensured by the government.
Income declared under the scheme shall not be taxable under the income tax Act,1961.
Immunity shall be granted in respect of declaration made under the scheme.
This is one more way or hurdle to stop these skipper or to make them slow.
3) Finance bill, 2017
Finance minister on his budget speech announced that on the recommendation of SIT ( Special
Investigation team) on black money, the government have decided not to allow cash transaction
above Rs. 3 lakh (section 269ST). No person shall receive an amount of Rs. 3 Lakh or more from
another person in a single day and if any, assessee crossing that limit have to pay the penalty of
equivalent amount which exceeds the limit, that would be inadmissible expenditure, this will lead
towards payment by the mode of other than cash i.e. through Net banking and will help the
government to keep track of higher value transactions and bring transparency.
And Indian Government has set a target of Rs. 2,500 crores digital transaction for 2017-18 through
UPI (unified payment interface), USSD (unstructured Supplementary service data) Aadhar Pay, IMPS
(immediate payment service) and debit card.
4) BTT (Banking transaction tax).
In Latest Finance bill on 1st February,17, finance minister Mr. Arun Jaithely” said that India’s Tax to
GDP ratio is very low. And we are largely a tax non compliance society when too many evades the
taxes burden falls on those who are honest. Out of 3.7 Crores who filed tax returns in 2015-16, only
4. VISHAL MALPANI 4
24 Lakh person showed income above Rs. 10 lakh and out of 76 Lakh individuals reported more than
5 Lakh, 56 lakh are salaried individuals.
So Indian Government is also considering to replace the current income taxation system with the
Banking Transaction Tax (BTT) from very soon. Although no confirmation from the government
official was received till the date.
BTT means the tax levied on the debit/credit transaction in bank accounts and can be automatically
collected while settling down of transaction by bank, will leads to greater pellucidity in direct taxation
system, and will end up in making the economy more honest. And resultant to demonetisation more
money is in banking system and will help government to keep an eye on every transaction with more
transparency, and help for ease implement of BTT as well.
As mentioned by the finance minister Mr Arun Jaithley only 1% of total population pays the taxes,
because current taxation system works on what the Assessee is disclosing its income and its reliability
and relevance needs to be verified by the Income tax authorities, that requires manual intervention
of both the parties Income tax authorities and Assessee, but under BTT the tax will be collected
automatic from the debit and credit transaction in bank accounts which will reduce the manual
intervention and helps the government to collect the more tax revenue will be more effective in
cracking down the black money, corruption and to lead towards the digital economy, By this new
policy all persons who were not covered under Income tax act to pay the tax, will now be under its
ambit and will be subjected to tax.
Goods and Service Tax
1) There is need for more simplification and rationalization of tax system. The government is
working more on plugging the loopholes in tax administration.
So GST Law is a need for hour, GST is not only meant for the “one nation one tax” it is more than
that, it will eliminate all the tax complexities which were there in the old tax system to curb the black
money transactions and will increase the total revenue inflow to government in terms of tax. The bill
will consume almost all the multiple indirect taxes levied by the different authority to create a single
rate of tax and make the India as a single market will help to control the corruption to a certain level.
Jaitley said that Demonetisation and GST both will fetch more revenue to government
2) Illustration demonstrating ambiguity in the existing tax administrative systems (Service tax,
Excise Duty or Value Added Tax).
In existing Indirect taxation acts, assessee needs to declare his input tax credit amount based on the
service and goods received as per his books, after complying of law and assessing officer should ask
the assessee about the reliability of ITC availed data, if he has any reasonable ground of belief that
data filed is not accurate or reliable. And meanwhile assessee should also take reasonable steps to
verify that the payment of tax has been paid by the vendor or Subcontractor to the government. In
these all compliances, there are might some cases, where Assessing officer have not objected the
ITC availed by the assessee (buyer), however data was not accurate or seller might have not paid the
tax amount to department as there is no track of ITC invoice wise or monthly tax return wise will
5. VISHAL MALPANI 5
result into loss to revenue and even may promote the corruption and black money transactions.
Under GST regime these all the loopholes were plugged out, In GST Input tax credit can only be
availed by the assesee if the seller have been submitted his return and he has disclosed assessee
name as buyer, then only ITC shall be credited to buyer (assessee)‘s E ledger, which may be seen
after login to site (section 16(1) input tax credit under GST Law ). So ITC will be supervised digitally
and no ITC can be availed unless and until tax was paid by the seller will upshot into less revenue loss
to government, because of more digitally working environment will lead towards combating the
black money and corruption
Conclusion
Both the GST and demonetisation may impact adversely to some of the sector in short run but will
have the long term benefit. Demonetisation and GST & Income taxation are more targeting in to
making the transaction more transparent and leads towards the digital economy. Post
demonetisation Almost every bank today is receiving larger number of applications for issue of credit
cards, debit cards, e-wallet facilities. So the move towards legal channels of transaction is already
happening.
6. VISHAL MALPANI 6
Demonetisation Impact on Indian Economy
Almost 3 months after India’s scrapping of high demonetisation currency note, Long queues are
getting shorter, but still queue spew out of ATMs, some sectors of economy continues to struggle
with cash crunch and lack of readily available cash, some grassroots businessmen are using the
revolutionary way of doing the business with the electronic payment capabilities and general public
started to use the digital banking for paying for the goods and services.
Demonetisation has caused the sudden breakdown in the commercial ecosystem, cash centric
business were temporarily halted due to insufficient liquid cash in the economy, like Agriculture,
fishing, Transportation and informal market. There are many transient impacts on economy both
adverse and encouraging, some of impacts are mentioned below:
1) Inflation:
Introduction :
Inflation reflects the reduction of purchasing power that each currency unit holds. Inflation is a
sustained increase in the general price level of goods and service in an economy over a period of
time resulting in a loss of value of currency,
The RBI (Reserve Bank of India) measures the inflation of Indian Economy considering its primary and
main tool i.e. CPI (consumer price index). Prior to this, another measure of inflation used by RBI was
the WPI (wholesale price index).
CPI measures changes in the price level of consumer goods and services purchased by the
households.
CPI : Updated Cost# /Base Period Cost## * 100
# : Updated cost means the price of an item in the given period of time
## :Base period of India is year 2012
The Central Statistics Office publishes the CPI index on a monthly basis. It also comes out with
separate numbers for the rural and urban population.
Impacts
The RBI has CPI growth targets to adhere to while deciding its monetary policy stance. By January
2016, it was supposed to keep inflation below a target of 6%, which it was able to do. Its next target
is to keep inflation at or below the 5% mark by March 2017.
7. VISHAL MALPANI 7
After the flushing out the large denomination currency note from Indian market since November 9,
there is lower demand for the products and services due to shortage of liquid cash to spend are
resulting in to a negative impact on inflation. Consumers are refraining from making any purchases
except essential items from.
Activity in the real estate sector, which includes a lot of cash and undocumented transactions, slowed
down significantly,
Due to cancellation of legal tender of 86.4% of the value of the currency notes, but because of re-
monetization being slow, the supply and demand of food items fell. It will puts more downward
pressure on Food item inflation which accounts for 47.3% of the overall CPI.
Graphical Representation ( Source Ministry of Statistics and Programme Implementation)
5.69
5.263
4.285
5.468
5.757 5.772
6.068
5.048
4.386 4.203
3.63
3.41
0
1
2
3
4
5
6
7
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Inflation Rate
8. VISHAL MALPANI 8
2) GDP (Gross Domestic Product)
Introduction
As per IMF (International Monetary fund) GDP measures the monetary value of goods and services
– that is, those are brought by the final user – produced in a country in a given period of time (Quarter
and Year), so we can sum up the entire definition in a simple formula that would define the GDP
would be : GDP = GVA# + taxes on products – subsidies on products
# : GVA (Gross Value Added) is the production value of goods and service in a sector or an industry
of an economy.
Demonetisation has triggered the temporary halt in the informal segments which are more cash
centric sector due to the cash crunch, if they are not going to able to sell the products and services,
they are not able to purchase from the supplier, which will commence one chain reaction. Informal
which accounts for the 40% of the Indian economy have come to provisional halt for some period,
will results in to the downward fall of Indian GDP.
Impacts
IMF (international monetary fund) cuts down the India’s GDP growth forecast for the 4th quarter of
2016 to 6.6% on due to demonetisation. According to IMF the downward trend in Indian economy
due to demonetisation could last from two to three quarters. As a result, GDP and GVA growth in the
quarters from October to December 2016 and January to March 2017 could be significantly lower
than previous years. Some upward trend can be seen in the first quarter of fiscal year 2017–2018.
Market expectation of Indian GDP went down to 6.5% year on year in the 4th quarter of 2016 ,
followed by the market consensus of GDP of 7.5% of 3rd quarter of 2016.
126.3 126 126
127.3
128.6
130.1
131.1 131.1 130.9
131.4 131.2
130.4
122
124
126
128
130
132
134
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
CPI
9. VISHAL MALPANI 9
Indian GDP from the 4th Quarter of 2014 never dips down below 7.0% till now, but if as per Market
consensus and IMF it went down below 7.0% this will be the lowest GDP from the last 2 year’ GDP
data. All 3 factors (demonetisation, GST and income tax) are targeting more on the black money and
black money could be 30% of Indian GDP and in Rs. terms it is 28 Lakh crore, so there is direct hit on
the 30% of Indian GDP. Government have asked 3 institute to derive these statistics (National
Institute of Public Finance and Policy, National Institute of Financial Management and National
Council of Applied Economic Research). These 3 institute used different methodology for arriving
these figures.
Graphical representation ( Source Ministry of Statistics and Programme Implementation)
3) Equity Market :
Introduction
Equity Market are the barometer of the economy of the country, if wants to check up the real picture
of any country’s economy best way of this is to observe their equity market situations and
background.
In India major stock exchange is Bombay Stock Exchange and National stock exchange.
To know the relative prices of shares on Bombay stock exchange, Sensex is used. Sensex is a free
float market weighted stock market index of 30 well established, most actively traded stocks,
representatives of various industry sectors and financially sound companies listed in the Bombay
stock exchange. Sensex is considered as the pulse of Indian stock market.
NIFTY 50 index is a group of 50 stocks covering 22 sectors of Indian Economy. Companies in this group
are usually considered as most consistent in reference of earnings growth and High P/E ratio. Nifty
50 offers investment exposure to the Indian Market in one portfolio.
7.9
7.1
7.37.3 7.4
7.2 6.6
5.5
6
6.5
7
7.5
8
Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17
Apr-16 Jul-16 Oct-16 Jan-17
GDP % 7.9 7.1 7.3
IMF Forecast 7.3 7.4 7.2 6.6
GDP % IMF Forecast
10. VISHAL MALPANI 10
Impacts
Equities over Indian stock markets have shown the falling trend after the midnight on November 8,
2016. The two benchmark of Indian Stock market equity indices—the Nifty 50 and the BSE Sense was
displaying downward trend on each trading day since the demonetisation except for November 10
and November 22. But later after 26 December,2016 we can see continuous upward trend in BSE
indices prices till date , SENSEX later again jumped above 27000 points. After witnessing this we can
say that, after the demonetisation Equities fall, but as prospects are better
Mid and small-cap indices have been hit much harder than broader market indices. The BSE Sensex,
the BSE Mid Cap and the BSE Small Cap indices fell 5.30 % 9.56% and 9.09%, respectively, in the
period from the 9th Nov,2016 to 26th Dec,2106 .
It had also have the impact on the INR/USD Exchange rate also. Because the value of money is getting
decreased due to elimination of fake currency and black money. USD/INR it went upto 68.80615 on
23rd November,2015, i.e. highest in 10 year period.
Graphical Representation ( Source www.bseindia.com)
4) Reduction of bank interest Rates
Introduction
The RBI uses monetary policy to maintain price stability and an adequate flow of credit. Rates which
the Indian central bank uses for this are the bank rate, repo rate, reverse repo rate.
24500
25000
25500
26000
26500
27000
27500
28000
28500
BSE - SENSEX
11. VISHAL MALPANI 11
The repo rate, or repurchase option rate is the rate at which RBI lends money to the commercial
bank and it is the key monetary policy rate for the RBI for injecting the liquidity in banking and Indian
economy , and it is used by to control inflation and Bank interest rate also. Current repo rate is 6.25%
The reverse of the repo rate—the rate at which RBI borrows money from the banks, RBI uses this
instrument when it feels there is more money in banking system to absorb the liquidity. Current
Reverse repo rate is – 5.75%
A modification in the repo rate directly impacts the in rates to commercial banks lending and
borrowing. Other rates, like the reverse repo rate are fixed against the repo rate.
Impacts
After the announcement of demonetisation, Banks are flooded with the amount that was deposited
because of scrapping of 500 and 1000 currency notes, According to data from the Reserve Bank of
India released on November 21, Banks have received Rs. 5,44,571 crores . So Banks have already in
progress to reduce their deposit rates. Due to the expected fall in inflation, the RBI will expected to
undertake more cuts in the repo rate. So, Lending rates are expected to fall as well.
These rate cuts will aim to boost the business by lending public the money which will reduce the
impact of demonetisation. They will help to temporarily derailed economy to come back on track. A
cut in interest rates boosts economic activity, GDP and economic growth will again shows the upward
trend. After demonetisation ICICI, HDFC Bank cut FD rates by up to 0.25%.
It will translate into lower interest rates on existing floating rate loans and new loans. The reduction
in lending rates will tempt the consumers to take out loans for purchasing expensive consumer
discretionary items like vehicles and houses.