Govt. Mulling Cash Tax For 10 Lakh+ Transactions; Aadhaar Can Be Made Compulsory For Using Cash
On July 5th, the new Govt will introduce their first budget, and days before that, reports are coming in regarding some big bang changes in the overall financial transactions happening in India.
The focus will be to eliminate cash transactions, and soon, a special cash tax can be introduced.
And, the biggest change of them all: Aadhaar can be soon made compulsory for all cash transactions above a threshold.
Cash Tax On Cash Transactions?
As per insider reports coming in from the Finance Ministry, Govt. is thinking about imposing a special tax on all cash transactions above Rs 10 lakh.
The objective is to ensure that more and more Indians use digital modes of transacting, and this can be the trigger.
Since RBI has removed all charges from NEFT and RTGS transactions, some officials are baffled on the use of cash at all.
An unnamed official said “Why should someone withdraw over Rs 10 lakh for cash transactions when digital payments are being encouraged?”
Aadhaar Can Be Made Compulsory For Cash Transactions?
Another major development which can happen on July 5th is the rule which makes Aadhaar compulsory for all cash transactions above Rs 10 lakh.
Govt. officials are of the view that in this age of digital transactions and mobile wallets, there is no reason why a person will need to withdraw more than Rs 10 lakh, unless its a shady, underground deal.
Another official said, “A MGNREGA beneficiary needs to authenticate receipts using Aadhaar but someone withdrawing Rs 5 lakh need not do so as things stand.”
Govt. Is Pushing For Cash-less Society
Ever since PM Narendra Modi launched the Digital India movement on July 1, 2015, there have been a lot of efforts taken to make the country go cashless and digitize the transactions as much as possible.
The Government of India especially is pulling all stops to make sure digital means of transactions are being used more often and has employed quite some laws to boost the use of digital modes of transactions.
Some of the major decisions taken by Govt. to reduce cash transactions, and encourage digital transactions: