Rumours rife on social media over scrapping of income tax

Hyderabad: Social media is going viral with speculations that the Prime Minister Narendra Modi will recall 125,000 retired Income Tax (I-T) officers aged 58-61 years, give them a three-day training from November 28 to 30 and they would join work from December 1. It is also being said that the financial year will shift to January-December

instead of April-March and that the announcement would be made on December 20. There is also strong possibility that the Central government may scrap Income Tax from FY 2019-20 and replace with 'Banking Transaction Tax' (BTT) from April 1, 2019 likely and only two taxes—direct tax as BTT and GST as indirect tax—would remain.

The list of what the government might do does not end here. If the social media is to be believed, it even explains how government might control black money.

It would dismantle the cash economy by not allowing any cash transaction above Rs 10,000 without PAN or Aadhaar. All salaries and business expenses required to be made in cheque or RTGS.

A cash limitation order will be issued that will allow only maximum cash allowance of total Rs 50,000 per person. Few months thereafter, Rs 2,000 note will be demonetised. As some of the cash economy will try to shift to gold, gold coins manufacturing and imports will be banned.

Another step would be to issue a gold and precious jewellery control order which will allow only 500 grams of gold per person and a certain value of other jewellery.

Relaxation will be given for existing jewellery if declared to authorities as per format. After a certain date, all undeclared gold and jewellery will be liable to be taken over by the State.

The next step would be to issue a property and asset declaration order where all property (land, buildings and flats) and shares will have to be declared to the authorities in a particular format.

After a certain date, all undeclared property or shares will be liable to be taken over by the State. That will complete the removal of black money from India. Well this could be fake news as well. But then makes interesting reason, netizens feel.