Curbing cash-withdrawal by imposing tax on cash-withdrawal about rupees 10 lakh a year

Kashmir Times. Dated: 6/12/2019 11:24:23 AM

Dear Editor,
It refers to media-reports that central government is considering tax on cash-withdrawal above rupees 10 lakh from banks by an individual to encourage digital-payments to curb cash-transactions at a time when currency-circulation has bounced 19-percent above than it was at time of demonetisation of old currency done on 08.11.2016 thus killing the very objective of bold step of demonetisation. Any such step will be a step in right direction to effectively check parallel economy of black money and generation of unaccounted money.
Best is to restore monthly cash-withdrawal limit of rupees 96000 by an individual from banks which was done at time of demonetisation to tackle currency-crunch at that time, which may be gradually reduced to rupees 48000 per month. Any cash-withdrawal limit from banks should be fixed on monthly basis rather than annually. Logic of allowing cash-withdrawal of tune of rupees ten lakhs though once a year is beyond understanding.
Central government should go ahead with massive and consolidated package to curb currency-circulation and generation of black money rather than in parts. Curbing cash-withdrawal should be coupled with introduction of permanent Voluntary Disclosure Scheme in form of proposed Elephant Bonds and compulsory deposit of all rupees-2000 notes in banks apart from imposing a limit for agricultural income and abolishing often-misused tax-exemptions on charity and contribution made and received by political parties.
—Madhu Agrawal,
1775 Kucha Lattushah
Dariba, Chandni Chowk Delhi.

 

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