The Finance Minister Arun Jaitley had introduced the Finance Bill 2017, more than a month ago in Parliament. The Finance Bill 2017 was passed with a voice vote on March 22nd. Wonder what is a Finance Bill? It’s nothing but a legislative bill proposing changes to taxes and duties. The Finance Bill 2017 was introduced in Parliament as a “Money Bill”. A Money Bill can be introduced only in the Lok Sabha. The Rajya Sabha can only suggest amendments to the money bill.
The Finance Bill 2017 is an excellent way to catch tax evaders. You have to quote Aadhaar while filing income tax returns. It is also compulsory to link Aadhaar to your PAN card. Many citizens use two, three or even four PAN cards to evade tax. If Aadhaar a unique identity (one person can have only one Aadhaar), is linked to your PAN card, you can have only one PAN card. The other PAN cards are useless. Tax evaders have no place to hide.
The Finance Bill 2017 asks you to cap cash transactions at just INR 2 Lakhs. Now, all your high value transactions like gold jewelry purchases, luxury goods and real estate transactions can easily be tracked as they leave a trail, if you make digital payments. How will you escape paying tax?
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Yes, the Finance Bill 2017 is excellent….But it can be misused. If the Finance Bill 2017 is put to the wrong use, it can be a nightmare. It is up to the Government to make sure this doesn’t happen. Find Tax Planning difficult? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com website. IndianMoney.com offers Free, Unbiased and on-call financial advice on Insurance, Mutual Funds, Real Estate, Loans, Bank Accounts and capital markets.
How Arun Jaitley’s Finance Bill 2017 May Become A Nightmare For You?
Do you know the rules of a raid by the income tax department? The tax department believes you hold/possess undisclosed assets….You don’t respond to summons from the tax department? You will find tax officers at your door, getting ready to raid your property. The tax officers will seize any asset or property which is the subject of the raid. If you run a business, they can seize assets mentioned in the book of accounts.
What do you learn from this? The tax department can only seize assets, which are part of the raid.After the passing of the Finance Bill 2017….the tax department can seize your business assets or even private assets, if you are subject to a tax raid. The tax department can seize your property even if it is not under investigation. All the tax department says... “Interest of the revenue.” The tax department can attach your property for a period of 6 months. There are no rules regarding safety or damage to the property, while in the custody of the tax department or how to claim it back.
Find this difficult to understand? Let me explain. Your doorbell rings at 7 AM and when you open the door, you find a tax officer standing outside. He demands to enter and search your home and when you ask him why….He simply barges in and starts searching the house. He can pick up your TV and Laptop giving some vague reason, even if he doesn’t find undisclosed assets.
Why is Finance Bill 2017 a nightmare? Simple….The tax authorities can attach your property or assets giving some vague reasons. Even a junior tax officer can harass you. You need to be really afraid of personal vendetta. The Government needs to see that the tax department does not misuse its enormous power granted under the Finance Bill.
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2. The tax department has power to survey charities
The tax department barges on the property of a charity and asks anybody there, you (owner), employee or even a volunteer, information about the charity in what it calls a ‘survey’ of the property. The tax department can ask any question regarding book of accounts or seek any information on the activities of the charity. Don’t you think this is too much power in the hands of the tax authorities? Wouldn’t charities be getting the shivers?
Yes, the Finance Bill 2017 is really great….But, the Government needs to make sure the income tax department does not misuse its enormous powers under the Finance Bill 2017.
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