ADOPTION OF BANKING TRANSACTION TAX
This query is : Resolved
05 October 2017
The Arthakranti Sansthan has proposed a formula which, if implemented will be the greatest ever reform in INDIAN history.
It has proposed to adopt the Banking Transaction tax (BTT).
I think as a CA pursing student, it will increase transparency, efficiency and reduces compliance costs.
Is the adoption of BTT the way forward for our economy to proper?
06 October 2017
Many times we hear such kind of ideas. This seems simple but has so many problems with it. If implemented it will deduct tax on all transactions. Who will take responsibility? We have seen bank officials' malpractices in the recent Demonetization. This is not a transparent system.
06 October 2017
Sir, i agree with u. but we had and r still having problems with income tax and GST. The ultimate goal of levying tax is to earn revenue, which objective is met with BTT. The proposed BTT may r may not
06 October 2017
The proposed BTT may r may not be a tax on all Transactions. we can put in place a system where a 2% is levied on the credit amount as on the last date of financial year which looks attractive and easy too. Y is that all CA'S and bureaucrats want this complex and failure INCOME TAX to continue and not something new in place. So far tax deduction is concerned in BTT, the software should be designed in such a manner that it deducts 2% automatically on last day of financial year, so that bank officials dont have fingers to intervene.
06 October 2017
The biggest demerit of BTT is that from Beggar to Mukesh Ambani, all have to bear same rate of Tax. Who will monitor and how to ensure that different persons bear different burden of tax? This theory is impractical, full of lacunas.
06 October 2017
Plz remember that all softwares are man made. Everyday we hear the cases of hacking etc. If this is implemented, Job of Bank Branch Managers will be the most demanded job in India.
06 October 2017
Sir, agree with u. but with due respects , the same system continues with INDIRECT TAX where the same ambani to beggar bears the same rate. It is also the same with income tax. For eg: a person earning 7 lakh P.a. and 9 lakh p.a. will come under same slab. so wht is so different in BTT. We saw GST being implemented with lacunas which r getting corrected. BTT can also be corrected Sir.
06 October 2017
I agree with you that in indirect tax all bear same tax rate, but lower income people are not covered in Income Tax & other direct taxes. Further lower income people buy items as per their requirements / paying capacity. If the proposal is to implement BTT in place of all Taxes, it is not good. May be one day comes when the Govt plans to implement BTT. Lets wait until the same.
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