August 15th 2017 is a great day for you and the countless citizens of this great country. It is the 71st year of India's independence. Addressing the Nation from the ramparts of the Red Fort, Prime Minister Narendra Modi presented his Independence Day speech, praising demonetization as a weapon against black money.
The Prime Minister said that more than Rs 3 Lakh crore of money moved into the banking system after demonetization. The Government is keeping a close eye on Rs 1.75 Lakh crores of this money, which was deposited in banks after demonetization and also on more than 18 Lakh of our citizens, who are suspected of possessing disproportionate assets.
This is what the Prime Minister has to say on demonetization, “When demonetization was announced, the world was surprised. People thought that this was the end of Modi. But the way our 125 crore countrymen had shown patience and faith, we were able to take one step after another in our drive against corruption,”
Let us the citizens of India, pledge to fight black money and the corruption fueled by it on our 71st Independence Day. Want to know more on tax planning? 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 is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
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The Prime Minister said that demonetization was a brilliant move. It has brought hidden black money into the formal banking system. PM Modi said that Rs 1.25 Lakh crore of black money has been detected after demonetization. Let's take a look at PM Modi's fight against black money and how he has succeeded, even as many of his predecessors failed.
Prime Minister Narendra Modi said that demonetization and the fight against black money, led to the discovery of many shell companies. For those who don't know, a shell company is inactive and does not conduct any business activity. They are also called paper or dabba companies. All the financials of these companies are only on paper. Shell Companies though registered with the ROC (Registrar of Companies), have only postal addresses with no real offices or employees.
The Prime Minister said that demonetization has led to the discovery of about 3 Lakh shell companies, whose only purpose was to facilitate the generation of black money. More than 400 of these shell companies were found to be operating from a single address. The Government has cancelled the registration of 1.75 Lakh shell companies, which were caught from the data mined after demonetization.
Don't you feel that shell companies can no longer facilitate the generation of black money?
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2. PM Modi forces defaulters to pay tax dues
The Prime Minister has said that many new taxpayers have started filing ITR after demonetization. The number of new taxpayers filing income tax returns from April 1st to August 5th is 56 lakhs. Only 22 Lakh citizens filed ITR in the same period last year. The fight against black money has identified 18 Lakh citizens whose income is much higher than their declared income. The Government wants these citizens to explain the source of this income and why tax has not been paid.
The Prime Minister also said that more than 4.5 Lakh citizens have accepted their mistakes and have promised to tread the right path, paying their tax dues in time. This is what PM Narendra Modi has to say on tax, "One lakh people, who had neither heard of income tax nor paid income tax, have now been forced to do so.”
Don't you think tax defaulters have no escape this Independence Day?
3. PM Modi seizes Benami Properties through demonetization
Prime Minister Narendra Modi said that more than Rs 800 Crore worth of Benami Properties have been seized till date. This has given courage and confidence to you and other common citizens of India, showing the Government to be really serious in confiscating benami properties and destroying black money in India.
For those who don't know, a Benami property is held by one person, but the money is paid by another person. If you buy a property in the name of your spouse, child, father, mother, brother or sister and the money is not paid from your known sources of income, this is a Benami property.
So how do you and other citizens evade taxes through benami properties? You pay cash and buy a property in the names of your servants, drivers, friends or relatives. The Government would find it very difficult to trace you, the real owner of this property, which is now a benami property. You could easily evade taxes.
Do you know that if you are caught with Benami property, you could face up to 7 years of rigorous imprisonment and pay a penalty of 25% of the fair market value of this property?
PM Modi has a new weapon against black money. The goods and services tax popularly called GST, which was launched across India on July 1st, has cut down the travel time of trucks by about 30%. GST has led to the abolition of check posts and brought transparency to the economy. GST is a game changer which will help India become a corruption-free Nation. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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