Come Out Clean scheme of Modiji derailed.
The intention of Modiji is good to provide opportunity to all Indians to come out clean after paying 45% Income tax. But what appears from the advertisement, the Government wants to Tax on the current value of assets and wants it to be paid within two months. An asset ,if some body, purchased 30 years back at Rs.1 lac may have become Rs.50 lacs today and if he is asked to pay 45%- it is huge 22 lacs and that also he has to pay within 2 months. It is impossible to sell assets in such mere two months and pay Income tax to Government. It means it will be impossible for people to come out clean because selling assets in two months to get money to pay tax to Government is impossible task. Thus bueauracracy made Modiji's intention impossible to be achieved. This happended in case of earlier scheme for NRIs where government could not collect more than 4000 crores while the opportunity was more than 4 lac crores. Again,the opportunity for the domestic citizens could have brought more than 10 lacs crores of Income Tax to Government coffers, but the valuation game and two months payment schedule have derailed Modij's good intention.
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This scheme is meant for tax evaded during last six assessment years. Government can not do anything if your tax evasion remains undetected beyond that period. Person who has bought assets with tax evaded income more than 10 years back can relax and smile. No worries.
Jun 20
#(Professor Umesh Kumar - Why should the intial amount be deducted. That was the actual black money used. People should be grateful that they are being allowed to get away with 45%.
May 31
This just an argument put forward by people who have amassed wealth by wrong means. The only way to deal with such people is to punish them severely in a defined time frame.
May 31
For financial instruments other than cash, 50% vluae may be assessed based on the present value/index value minus purchase price/invested initially amount can be taken as compromise at both ends.
May 31
