With the help of the Central bank or investment company and government, this scheme had become while working out its power under section 26(2) of the Reserve Bank or investment company of India, 1934 (RBI Act). Following the drawback of 500 and 1000 rupees, the government gave 50 days of sophistication period to deposit or exchange their old legal tender in the banks. New tender of 500 and 2000 rupees money was launched.
However, a great deal of inconveniences was suffered by common people credited to cash crunch as there was the insufficient way to obtain cash over its demand. Interestingly, various unique methods and cheap hoardings were devised to disguise their black money into white money. Thereafter, December 2016 on 28, the specified bank or investment company notes cessation of liabilities ordinance was approved cabinet and on 30th December 2016, it received the assent of the elected chief executive.
In this ordinance, the government has made it a penal offense of having more than 10 old notes of 500 and 1000 rupees punishable with an excellent of Rs. 10,000 or five times the cash held. To start with the effect of demonetisation on Income Tax Return one must first consider the prospect of tax. Well, the tax is the price one will pay for civilization and socio-economic development. Under the Constitution of India, the Central government has the right to collect the income tax. There has been a lot of discomfit to the common man since demonetisation was executed.
However, the most bewildered aspect was the deposit of these specified notes under the TAX Act, 1961. There were many strategies used to conceal the black money through the span of these 50 days grace period. For example, requesting your employee or your in accordance with deposit profit their bank-account. Thus, bifurcating their dark money into various bank or investment company accounts.
However, the nationwide government had a concealed plan. The scheme of demonetisation was backed up by amendments in the TAX Act, 1961. Amendment in Rule 114B for mandatory quoting of PAN in case there is a cash deposit exceeding Rs. 2,50,000 during the fifty period of grace period. Introduction to Pradhan Mantri Garib Kalyan Yojna of financing action, 2016 has enumerated that the taxpayer must declare and pay their fees on undisclosed cash deposits in their bank or investment company or point out the income in ITR. They must pay around 50% of their income like the tax, surcharge, and penalty. The assessing officer will then scrutinize and assess the return and thereupon call the assessee for information if under-reported or misreported.
He can also concern notice if any taxable income continued to be returned or invoke penalty proceedings (S.270A). Despite such strict provision & heavy charges people try to avoid submitting ITR because of heavy imposition of tax and penalty. Most importantly not all cash deposited is undisclosed income. It can be savings of this particular person, which will be confiscated by the federal government then. Hence, people in lieu of disclosing their savings choose to dispose it off by showing certain investment.
There are two edges of each coin. Therefore, the impact of demonetisation on ITR processing will have negatives and pros. It can be positive as well as negative. In the recent amendment (TAX Act and guidelines) providing under Union Budget 2017-18, the tax rate has reduced considerably. The presumption is that lower the tax rate the higher will be the proportion of income tax return filing. The tax rate when compared with the previous financial season has been reduced to 5% and the income bracket has increased from 2.5 lakh to 5 lakh rupees.
Hence, altering the slab to a lower rate shall give the wider probability of submitting the ITR on time. As proposed that under section 43B any interest payable on any loans or advances to the co-operative banks by the assessee shall be allowed certain deductions if the ITR is filed prior to the due date.
- 3 a few months later
- 10 hours back
- Principal Guaranteed
- Branded garments at the mercy of 10 % excise responsibility
These advantages of lowering of tax liability will then encourage the taxes payer or the assessee to file the come back on or before the due date. Again proposed under section 139(4C) certain exempted entities are mandatorily necessary to furnish ITR. For instance, Investor Protection Fund, Core Settlement Guarantee Fund etc., to actually check and verify that these entities are functioning accordingly. Thus, bringing these entities under the purview of the tax department and thence encouraging them to file ITR online (To be noted that it will come into force for the AY.
What retains me heading is the realization that we, as adults, aren’t safeguarding our kids sufficiently. For a long time, we bought into the mantra that children were to be blamed for not making healthy food choices. We’ve overwhelming proof that children will make unhealthy options only when given unhealthy food options; conversely, children can make healthy choices if given healthy food options. Adults are accountable for the ongoing health, well-being, and protection of their children and this means the provision of healthy food choices and lack of access to unhealthy food choices. Healthy food consumption is the solitary biggest factor for avoiding chronic disease risk in children.