NEW DELHI: Over 1.75 lakh entities withdrew more than Rs 1 crore every from their bank accounts in 2017-18, including up to Rs 11 lakh crore, prompting the govt. to impose assessments for higher monitoring and discount of cash transactions.
Regardless that just a few of the withdrawals had been for accurate industrial desires, including by money management companies which space up ATMs, sources acknowledged the 2017-18 data also threw up loads of instances of what they believed was as soon as money intended to were ancient for illicit functions. In a huge amount of instances, the PAN furnished was as soon as fallacious or was as soon as no longer shared at all.
By the proposed 2% tax deduction at offer, the govt. hopes to toughen monitoring of entities that withdraw huge amounts of cash as entities withdrawing money will give their correct PAN to claim adjustment on the time of cost of reach tax.
Sources acknowledged there had been over one lakh PAN holders who withdrew Rs 1-2 crore money at some level of 2017-18, while there had been shut to 500 entities that took out over Rs 100 crore from their bank accounts. Virtually half of the money withdrawals at some level of 2017-18 had been from accounts where annual amount taken out was as soon as over Rs 100 crore.
The govtcollects data on all latest accounts which comprise annual money withdrawals of Rs 50 lakh or more, while data for some financial savings bank accounts is also reported by banks.
“The foundation is to trip to a much less money financial system and right here’s a step in that route. Most companies don’t will must comprise huge money transactions,” a tax genuine told TOI.
In the budget, finance minister
also proposed that entities with annual turnover of over Rs 50 crore mandatorily provide digital cost instruments equivalent to QR code-based entirely mostly UPI, credit score cards, NEFT and RTGS where there’s no longer this form of thing as a burden both on the user or the service provider.
Over the following couple of weeks, the Reserve Monetary institution of India is anticipated to work out the principle points in a potential that banks cushion patrons and retailers in the the same manner as they are doing for RTGS and
, which comprise now been made free for memoir holders the utilization of the 2 services to electronically switch money to rather just a few accounts.