According to reports, those with black money who disclose the sums may be liable to pay 50 per cent income tax. Half of the amount left after paying taxes will be locked in for four years and not accrue any interest. The lock-in period should be removed to make it more attractive for black money hoarders to come clean. Their white sums can be invested in their businesses or day-to-day activities, which will earn more indirect taxes from their spending. Also it must be ensured that those declaring such incomes and paying taxes will not be questioned later. The government must be practical when it comes to the cash psychology of its citizens. Also, is it impertinent for tax authorities to enquire on the quantum of “streedhan”, while senior citizens should be spared their “vridhavastha capital” — savings in cash funnelled out of their white/taxed income to live in peace.
M Kumar New Delhi
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