01 March 2008
The Banking Cash Transaction Tax (BCTT) was introduced for the purpose of enlarging the information system of the Income Tax Department. But now since the information is also being gathered through other instruments introduced in the last few years, BCCT is withdrawn.
01 March 2008
A GOOD QUESTION INDEED. WHEN BCCT WAS INTRODUCED INITIALLY , EVEN INDIVIDUALS WERE MADE TO PAY. LATER ON PUBLIC UPROAR, THE GOVT. WITH DREW ON INDIVIDUALS AND RETAINED FOR CURRENT ACCOUNT WITHDRAWALS. THE BASIC OBJECTIVE OF THE TAX WHEN INTRODUCED WAS TO STEM AND UNEARTH BLACK MONEY. BUT BY WITHDRAWING THE SAME FROM 01-04-2009, I DONT KNOW WHAT KIND OF MESSAGE THE GOVT . IS SENDING TO THE NATION. ANY WAY IN AN ELECTION YEAR , THE GOVT. CANNOT AFFORD TO IGNORE CORPORATE PRESSURES. THE OTHER ANALOGY IS THAT WHATEVER COLLECTIONS SO FAR MADE MAY BE A PITTANCE COMPARED TO THE COST OF THE EFFORT AND BANKS MAY HAVE COMPLAINED OF THE SAME. ANOTHER SERIOUS ISSUE IS UP TO WHAT EXTENT GOVT. ACHIEVED THE OBJECTIVE IN THE SHORT PERIOD OF 2/3 YEARS AND HOW MUCH BLAK MONEY WAS UNEARTHED OR WHAT ARE THE CONCLUSIONS AND FINDINGS FROM THESE COLLECTIONS SO FAR. I FEEL THE GOVT. HAS NO ANSWERS FOR THESE QUESTIONS. TO AVOID ANSWERS EVEN FOR THE FUTURE, THE BCCT MAY HAVE BEEN WITH DRAWN. ANOTHER ANGLE TO THE WHOLE ISSUE IS THAT IT IS THE FINANCE MINISTRY WHICH HAS PROPOSED THIS AS A TAX COLLECTION MEASURE AND THEY ARE THE ONLY ONE NOW TO ANSWER ABOUT THE RESULTS. THE FINANCE MINISTRY WAS THE JUDGE WHILE IMPOSING BCCT. NOW THE SAME MINISTRY HAS BECOME THE IMPLEMENTER ( BANKING COMES UNDER FINANCE MINISTRY).NOWHERE IN THE WORLD THE SAME PERSON OR INSTITUTION CAN BE MADE AS JUDGE ALSO AND IMPLEMENTER ALSO AND NOW VICTIM ALSO. IT COULD BE TO AVOID THIS UNPLEASANT POSITION PERHAPS THE MINISTRY BACKTRACKED NOW. R.V.RAO
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