5 ms·

For a family of 4 you will get 2.5 * 4 lacs exemption (from scrutiny). You only have to justify the source, right? Like if you are a farmer, you do not pay taxe

by eklavya 10y ago

For a family of 4 you will get 2.5 * 4 lacs exemption (from scrutiny). You only have to justify the source, right? Like if you are a farmer, you do not pay taxes and you can have cash or if you are a big businessperson you can justify the cash (if it matches your declared turnover) as the prerequisite to do your daily work. If you are none of the above and chose to expose this big cash (more than Rs. 1000000 for a family of 4) to theft, decomposition, natural disasters, you would still be declaring your assets in your income tax, right?

kranner 10y ago
Yearly income is declared, not assets, unless you're running for political office or something. People do have lakhs in cash stored in houses from legit income because they don't have banks where they live. They've never kept records of sources because they've never been asked to by the government. All of a sudden we're telling them anything above one year's taxable income is suspect, and they may be thrown in jail for seven years if deposits exceed that amount.
- eklavya 10y ago
  I find it hard to believe that people with more than 1000000 in cash won't be bothered to deposit it in banks because they live somewhere where no banks and post offices exist. Government would be least of my worries with that much liability (theft).
  - kranner 10y ago
    This is an oversimplified view of things. One counterexample is house wives with alcoholic/abusive husbands who have been saving cash secretly. Another is people who are illiterate or otherwise too intimidated to walk into a bank. It's a sixth of the world's population; there are a million such stories.
    - eklavya 10y ago
      You must be joking. We are a poor nation and you suggest poor people in India, living in backward areas with no banks have more than Rs. 1000000 in cash and there are millions of such "poor" people?
      - kranner 10y ago
        That's a straw man argument. I never said there are millions of families of four with 1000000 each. (By the way you can't deposit 250,000 in each of your kids' and family member's names under the new scheme; even if you gift them the money it is still assessed as the original earner's income). I said there are many, many exceptions that fall outside the half-assed line the government is taking - and in my point of view, it is not ethical to throw them under the bus even ostensibly to catch a few bad guys. In the meantime, the BJP is milking it for political mileage by splashing pictures of Modi on giant hoardings claiming he has destroyed black money singlehandedly (in rhyming verse!)
        eklavya 10y ago
        Ok I don't see how that was a straw man but ok, let me address the specifics then. 1) Housewives with abusive husbands - No problem, just walk into a bank and deposit. Don't have a bank account? Open one on the spot, under Jan Than yojna you can have zero balance account. 2) Illiterate people - They may be illiterate but they are not poor if they have more than 2.5 lacs cash. Open an account if you don't have one and deposit. I heard you will not be scrutinised for 2.5 lacs in each account (at most one per person) no matter what their age or whatever but I have no source for this right now. 3) Poor people - If you have more than 2.5 lacs. You are not poor. "even if you gift them the money it is still assessed as the original earner's income". Right and you don't have a problem because you saved up over time and so it is accounted money. "the BJP is milking it for political mileage by splashing pictures of Modi on giant hoardings claiming he has destroyed black money singlehandedly". Come on, politicians will milk their perceived good deeds. I don't see anything wrong in it. I want to reinforce this mentality (do good get votes) through positive feedback.

by eklavya 10y ago

kranner 10y ago

Yearly income is declared, not assets, unless you're running for political office or something. People do have lakhs in cash stored in houses from legit income because they don't have banks where they live. They've never kept records of sources because they've never been asked to by the government. All of a sudden we're telling them anything above one year's taxable income is suspect, and they may be thrown in jail for seven years if deposits exceed that amount.

eklavya 10y ago
I find it hard to believe that people with more than 1000000 in cash won't be bothered to deposit it in banks because they live somewhere where no banks and post offices exist. Government would be least of my worries with that much liability (theft).
- kranner 10y ago
  This is an oversimplified view of things. One counterexample is house wives with alcoholic/abusive husbands who have been saving cash secretly. Another is people who are illiterate or otherwise too intimidated to walk into a bank. It's a sixth of the world's population; there are a million such stories.
  - eklavya 10y ago
    You must be joking. We are a poor nation and you suggest poor people in India, living in backward areas with no banks have more than Rs. 1000000 in cash and there are millions of such "poor" people?
    - kranner 10y ago
      That's a straw man argument. I never said there are millions of families of four with 1000000 each. (By the way you can't deposit 250,000 in each of your kids' and family member's names under the new scheme; even if you gift them the money it is still assessed as the original earner's income). I said there are many, many exceptions that fall outside the half-assed line the government is taking - and in my point of view, it is not ethical to throw them under the bus even ostensibly to catch a few bad guys. In the meantime, the BJP is milking it for political mileage by splashing pictures of Modi on giant hoardings claiming he has destroyed black money singlehandedly (in rhyming verse!)
      - eklavya 10y ago
        Ok I don't see how that was a straw man but ok, let me address the specifics then. 1) Housewives with abusive husbands - No problem, just walk into a bank and deposit. Don't have a bank account? Open one on the spot, under Jan Than yojna you can have zero balance account. 2) Illiterate people - They may be illiterate but they are not poor if they have more than 2.5 lacs cash. Open an account if you don't have one and deposit. I heard you will not be scrutinised for 2.5 lacs in each account (at most one per person) no matter what their age or whatever but I have no source for this right now. 3) Poor people - If you have more than 2.5 lacs. You are not poor. "even if you gift them the money it is still assessed as the original earner's income". Right and you don't have a problem because you saved up over time and so it is accounted money. "the BJP is milking it for political mileage by splashing pictures of Modi on giant hoardings claiming he has destroyed black money singlehandedly". Come on, politicians will milk their perceived good deeds. I don't see anything wrong in it. I want to reinforce this mentality (do good get votes) through positive feedback.