Why amendment in taxation laws was brought in the middle of demonetisation
Op IndiaDemonetisation was a blow which struck at the heart of decades of planning by the corrupt. Simply put, the new laws stated as below: A penalty of 50% of tax amount for “under-reporting” A penalty of 200% of tax amount for “mis-reporting” as a consequence of “under-reporting” Before we proceed, we need to understand these two new concepts which were brought in. The new laws put the onus on the tax officer to prove that “mis-reporting” had taken place, thus it was not as straight forward a provision as the “under-reporting” clause. To avoid this anomaly, where an IDS applicant faced a tax rate of 45% and a crook caught in the demonetisation scheme pays just 30% tax, a new scheme of Pradhan Mantri Garib Kalyan Yojana was brought in. It should be noted that while 30% appeared the likely amount of tax to be paid, which could have “inspired” people to deposit their unaccounted cash, WhatsApp messages and many other considerations had also created the fear and confusion by circulating numbers like 200%.
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