{"id":52,"date":"2005-03-04T07:26:54","date_gmt":"2005-03-04T13:26:54","guid":{"rendered":"http:\/\/www.khaitan.org\/blog\/2005\/03\/must-have-cash-pay-cash-the-height-of-taxation\/"},"modified":"2005-03-04T07:26:54","modified_gmt":"2005-03-04T13:26:54","slug":"must-have-cash-pay-cash-the-height-of-taxation","status":"publish","type":"post","link":"https:\/\/www.khaitan.org\/blog\/2005\/03\/must-have-cash-pay-cash-the-height-of-taxation\/","title":{"rendered":"Must have Cash? Pay Cash: The Height of Taxation"},"content":{"rendered":"

In order to curb the flow of Black Money (it is estimated to be at 20% of India’s GDP or $82 billion), the Government of India is proposing<\/a> a scheme to tax withdrawals (ATMs, Cashier’s Check\/Demand Draft, Cash from Teller, etc.) of more than Rs.10,000 per day. This tax is 0.1% of the withdrawal amount. Looks like the whole Indian Finance Ministry<\/a> worked for a credit card company in their previous lives.
\nTo justify the tax, The Finance Minister added that the idea was to have a tax trail; citing the example of Brazil.
\nWake up and smell the coffee:
\n1. No hospital in India (except for the ones 99% of Indians could not afford) takes a form of payment other than Cash. So, be ready to tip the ATM on your way to the hospital.
\n2. How about buying 2 wheelers? Cash is king and the average price of a two-wheeler is Rs.20,000
\n3. How about wage payment? Every Friday (or daily) pay a tip to the teller for paying your workers.
\n4. Planning for an overseas trip? Need to buy some foreign exchange? Tip again! Ridiculous
\nWhat the Finance Minister does not realize that the hoarders of ‘Black Money’ will never park their illegal funds in Bank. There are better routes like soft money loans to construction companies\/builders, finance Bollywood movies<\/a>, launder it overseas<\/a> or simply stash away in jute sacks in ordinary looking cupboards. It is totally pointless to cite the Brazil example; Brazil did it to raise revenue. Mr. Finance Minister probably needs some help from the IT bigwigs in order to have an United States IRS<\/a> like paper trail 1<\/sup>.
\nOn a different note, this sounds like an opportunity for Visa, MasterCard gang. The total spend on personal expenditure using credit cards is less than 1% in India.
\n1<\/sup>A bank would notify the IRS if there were cash deposit\/withdrawal of more than $10,000.<\/p>\n","protected":false},"excerpt":{"rendered":"

In order to curb the flow of Black Money (it is estimated to be at 20% of India’s GDP or $82 billion), the Government of India is proposing a scheme to tax withdrawals (ATMs, Cashier’s Check\/Demand Draft, Cash from Teller, etc.) of more than Rs.10,000 per day. This tax is 0.1% of the withdrawal amount. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/posts\/52"}],"collection":[{"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/comments?post=52"}],"version-history":[{"count":0,"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/posts\/52\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/media?parent=52"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/categories?post=52"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.khaitan.org\/blog\/wp-json\/wp\/v2\/tags?post=52"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}