Operation clean money by income tax department

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 31st January, 2017.
Press Release


Income Tax Department (ITD) launches Operation Clean Money [स्वच्छ धन अभियान]
Income Tax Department (ITD) has initiated Operation Clean Money, today. Initial phase of
the operation involves e-verification of large cash deposits made during 9th November to 30th
December 2016. Data analytics has been used for comparing the demonetisation data with
information in ITD databases. In the first batch, around 18 lakh persons have been identified in
whose case, cash transactions do not appear to be in line with the tax payer’s profile.
ITD has enabled online verification of these transactions to reduce compliance cost for
the taxpayers while optimising its resources. The information in respect of these cases is being
made available in the e-filing window of the PAN holder (after log in) at the portal
https://incometaxindiaefiling.gov.in. The PAN holder can view the information using the link “Cash
Transactions 2016” under “Compliance” section of the portal. The taxpayer will be able to
submit online explanation without any need to visit Income Tax office.
Email and SMS will also be sent to the taxpayers for submitting online response on the e-
filing portal. Taxpayers who are not yet registered on the e-filing portal (at
https://incometaxindiaefiling.gov.in) should register by clicking on the ‘Register Yourself’ link.
Registered taxpayers should verify and update their email address and mobile number on the e-
filing portal to receive electronic communication.
A detailed user guide and quick reference guide is available on the portal to assist the
taxpayer in submitting online response. In case of any difficulty in submitting on line response, help
desk at 1800 4250 0025 may be contacted.
Data analytics will be used to select cases for verification, based on approved risk criteria. If
the case is selected for verification, request for additional information and its response will also be
communicated electronically. The information on the online portal will be dynamic getting updated
on receipt of new information, response and data analytics.
The response of taxpayer will be assessed against available information. In case explanation
of source of cash is found justified, the verification will be closed without any need to visit Income
Tax Office. The verification will also be closed if the cash deposit is declared under Pradhan Mantri
Garib Kalyan Yojna (PMGKY).
The taxpayers covered in this phase should submit their response on the portal within 10
days in order to avoid any notice from the ITD and enforcement actions under the Income-tax Act
as also other applicable laws.


 (Meenakshi J Goswami)
 Commissioner of Income Tax
 (Media and Technical Policy)
 Official Spokesperson, CBDT.

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RBI raises withdrawal limit from ATMS to Rs. 10,000 from Rs. 4,500

RBI raises withdrawal limit from ATMS to Rs. 10,000 from Rs. 4,500

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A PUSH TOWARD CASHLESS ECONOMY / LUCKY GRAHAK AND DIGI-DHAN YOJANA / LUCKY DRAW SCHEMA BY GOVERNMENT

                               A PUSH TOWARD CASHLESS ECONOMY

ECO of The National Institute for Transforming India (NITI) Aayog, Mr. Amitabh Kant on Thursday in a press release announced about the Lucky Grahak and Digi-Dhan Yojana

In their announcement they cleared that focus of Lucky Grahak and Digi-Dhan Yojana is on poor, middle class and small businesses so as to bring them into digital India companion

He explained about the two schemas as under

Weekly and daily awards

Under the Lucky Grahak Yojana, 15,000 winners will get cashback prizes of Rs 1000 each every day for a 100 day period starting on December 25 (Christmas) and ending on April 13 next year.

In addition, there will be weekly awards worth Rs 1 lakh, Rs 10,000 and Rs 5,000.

For merchant scheme 'Digi-Dhan Vyapar Yojana', there will be weekly prizes worth Rs 50,000, Rs 5,000 and Rs 2,500 to be announced during the period.

There will be 7,000 weekly awards each for consumers and merchants.

Mega awards

In addition, mega-awards will be announced on April 14 for both consumers and merchants, for doing transactions digitally between November 8 and April 13 next year.

For consumers, the first prize is Rs 1 crore, the second prize is Rs 50 lakh, and the third is Rs 25 lakh. For merchants, the prizes are Rs 50 lakh, Rs 25 lakh, and Rs 5 lakh, respectively.
 

Additional Details

•          The National Payment Corporation of India (NPCI) will implement the schemes.
•          There will be a random draw of digital transaction IDs to select awards.
•          All forms of transactions through UPI, USSD, Aadhar Enabled Payment System (AEPS) and RuPay cards will be eligible for lucky draws.
•          Scheme isn't applicable for transactions done through private credit cards and e-wallets of private companies.
•          First Draw will be on 25^th of December 2016.
•          Other Details will be disclosed soon by the NITI Aayog.

Go India Go Digital and win prizes

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Incentive to go cashless / Discount's on doing online transaction

    

                                  STEP FORWARD TO CASHLESS ECONOMY

Government has announced the Different incentives to boost the cashless transaction.

1.    Cash back/Discount on Petrol payments

The Central Government Petroleum PSUs shall give incentive by offering a discount at the rate of 0.75% of the sale price to consumers on purchase of petrol/diesel if payment is made through digital means.

By the above incentive a person will get benefit of Rs 15 on payment of Rs 2,000 by Digital means.

Expectation

Nearly 4.5 crore customers buy petrol or diesel at such petrol pumps per day who can take benefit of this incentive scheme.  It is estimated that petrol/diesel worth Rs.1800 crore is sold per day to the customers out of which nearly 20% was being paid through digital means.  In the month of November 2016 it has increased to 40% and the cash transaction of Rs.360 crore per day have got shifted to cashless transaction methods.  The incentive scheme has the potential of shifting at least 30% more customer to digital means which will further reduce the cash requirement of nearly Rs. 2 lakh crore per year at the petrol pumps.

2.    Railway’s e-ticket

Railway through its sub urban railway network shall provide incentive by way of discount upto 0.5% to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means.

By the above incentive a person will get benefit of Rs 5 on payment of Rs 1,000 by Digital means.

Expectation

Nearly 80 lakh passengers use seasonal or monthly ticket on suburban railways, largely in cash, spending worth nearly Rs.2,000 crore per year.  As more and more passengers will shift to digital means the cash requirement may get reduced by Rs.1,000 crore per year in near future.

  

3.    Free Travel Insurance on railway journey

All railway passengers buying online ticket shall be given free accidental insurance cover of upto Rs. 10 lakh.

Expectation

Nearly 14 lakh railway passengers are buying tickets everyday out of which 58% tickets are bought online through digital means.  It is expected that another 20% passengers may shift to digital payment methods of buying railway tickets.  Hence nearly 11 lakh passengers per day will be covered under the accidental insurance scheme.

4.    Discount of ancillary service on railway journey

For paid services e.g. catering, accommodation, retiring rooms etc. being offered by railways through its affiliated entities/corporations to the passengers, it will provide a discount of 5% for payment of these services through digital means.

All the passengers travelling on railways availing these services may avail the benefit.

5.    Discount on Toll Taxes

For the payment of toll at Toll Plazas on National Highways using RFID card/Fast Tags, a discount of 10% will be available to users in the year 2016-17.

  

6.    Reduced Service tax burden

No service tax will be charged on digital transaction charges/MDR for transactions upto Rs.2000 per transaction.

7.    Discount on Insurance Premium

Public sector insurance companies will provide incentive, by way of discount or credit, upto 10% of the premium in general insurance policies and 8% in new life policies of Life Insurance Corporation sold through the customer portals, in case payment is made through digital means.

8.    Reduced POS machines rental

Public sector banks are advised that merchant should not be required to pay more than Rs. 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile POS from the merchants to bring small merchant on board the digital payment eco system.

Expectation

Nearly 6.5 lakh machines by Public Sector Banks have been issued to merchants who will be benefitted by the lower rentals and promote digital transactions.  With lower rentals, more merchants will install such machines and promote digital transactions. 

9.    Issuing new Rupay Kisan Cards

The Central Government through NABARD will also support Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders to enable them to make digital transactions at POS machines/Micro ATMs/ATMs.

10. Government to go Digital

The Central Government Departments and Central Public Sector Undertakings will ensure that transactions fee/MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by them.  State Governments are being advised that the State Governments and its organizations should also consider absorbing the transaction fee/MDR charges related to digital payment to them and consumer should not be asked to bear it.

11. Digital transaction facility to rural area

To expand digital payment infrastructure in rural areas, the Central Government through NABARD will extend financial support to eligible banks for deployment of 2 POS devices each in 1 Lakh villages with population of less than 10,000.  These POS machines are intended to be deployed at primary cooperative societies/milk societies/agricultural input dealers to facilitate agri-related transactions through digital means.

Expectation

This will benefit farmers of one lakh village covering a total population of nearly 75 crore who will have facility to cashless transaction in their villages for their agriculture needs.

This will help to connect great amount of people to step in digital India companion.

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DEMONETIZATION

What is demonetization?

Demonetization is the act of stripping a currency unit of its status as legal tender.

The old unit of currency must be retired and replaced with a new currency unit.

Demonetization means Withdrawal of a particular form of currency.

(Recent event: - demonetization of Indian currency note of 1000 AND 500 denomination)

             Demonetization in WORLD 

India is not the only country faced the demonetization there are many country faced the demonetization 

Nigeria

During the government of Muhammadu Buhari in 1984, Nigeria introduced new currency and banned the old notes.

Ghana

In 1982, Ghana ditched their 50 cadis note to tackle tax evasion and empty excess liquidity.

Zimbabwe

Zimbabwe used to have $100,000,000,000,000 note. Yes a one hundred trillion dollar note.

Australia

Yes Australia too faced the same but the whole sole purpose for the same is to replace the paper notes with plastic ones

There are many other countries which faced the demonetization.

      

                                 Demonetization in INDIA 

In year 1978

It was on 16 January 1978 that the country was told that the Janata Party coalition, has decided to scrap Rs 1,000, Rs 5,000 and Rs 10,000 notes.

                           

In year 2016

Demonetization in Year 2016 that is what on everyone lips from 8^th of November 2016 when Mr. NARENDRA MODI (Prime Minister of India) on self announced the demonetization to be effected from 9^th of November 2016.

In his speech he announced that notes of 500 and 1000 will no more be the legal tender and same is withdrawn. He stated that one having the same can exchanged/deposit the old currency notes in their bank account or post office account and takes the NEW CURRENCY NOTE of Rs. 2000 and 500.

                         

Great Initiation by Government

World knows Mr. NARENDRA MODI (Prime Minister of India) as Pro-Active leader again proved by this step,

Where Mr. NARENDRA MODI (Prime Minister of India) takes a surprising and brave step of demonetization

YES it is BRAVE step, Replacing / taking out 86 percentage (%) of currency which amounts to around Rs 115 laces crores, particularly in an economy which believes in cash transaction do matters a lot

                                                               AND

Surprising for whole nation when whole nation is back in to their home after their day schedule around 8 o clock this epic announcement is made.

Secrecy is maintained to its peak level

Where the whole nation are thinking about the releasing of new Rs 2000 Note they might not even thinking that this will happens to them next moment

Intentions of Government

Intentions for this step are very much clear they stated that demonetization helps the country to

·         

•        Remove black money from system
•           Cutting Terror funding
•           Eliminate counterfeit currency  
•           Remove corruption
•           Reduce interest rates
•           less Cash economy
•        Economical parity in country

                            The step of demonetization made the honest person feels prideful.


By :- Young Minds Consultancy

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