1Dr. Sunil Kumar Faculty
2Dr. Vijita Aggrawal, Faculty,
3Dr. Sambhav Garg, Asstt. Professor,
One of the strange proposals made by the Union Budget 2008–09 is to tax at the rate of 0.1 percent on cash withdrawals above Rs.50000 from banks critically examining the pros and cons of the budgetary proposal. The neu> levy is claimed to be the nature of an anti-tax evasion measure whereas, in effect, it would be counterproductive and may prove to be medsure to encourage tax evasion and non-accountable of what is otherwise reflected by cash withdrawn from banks. The authors find it quite illogical and irrational for the simple reason that it would never ever fructify the twin underlying objectives, which the Finance Minister has expressly proclaimed to be.
To push the Indian economy from cash to cheque system; and
To control dealings in black money through banks
A critical analysis of the said budgetary proposal pinpoints that it was conceived and formulated in the air without evaluating its feasibility and hazardous consequences.
