TOWARDS CASHLESS TRANSACTION' PROPOSAL

As you are aware 10 countries are already operating on almost 100% ‘Cashless Transaction’ and the following simple scheme is the first step towards ‘Cashless Transaction’ in our country:

1. Abolish Rs.500 and Rs.1000 currency notes within maximum next 6 months' time since countries like US & UK do not use currency notes over 100 and 50 respectively.

2. Maximum cash withdraw from Bank/ATM should be restricted to Rs.1000 per day per PAN Card holder without any transaction fee. Similarly, cash purchase per PAN Card holder/person should be restricted to maximum Rs.1000/- per day.

3. All payments over Rs.1000/- should be made through electronic transfer of accounts. All types of shops have to use compulsorily Debit/Credit Card Machine instead of handling cash so that cash collection is restricted in retail shops. Similarly, shops should pay to their vendors only through e-transfer.

4. Some incentive, say 1% higher interest over bank interest on fixed deposit by cash upto maximum Rs.5000/- per month to encourage vendors/self-employed/retailers to save their hard earned money.

5. Compulsory online trade license for all type of businesses with nominal fees (Say, minimum fee - Rs.20) depending upon type of business/profession including NGO, retailer, vendor, self-employed, organized & unorganized workforce, consultant, lawyer, tutor, doctor, etc in order to bring everyone under IT ambit.

6. Compulsory submit online simple IT Returns form for all persons holding trade licenses for self and his or her business.

7. Everyone should declare immovable assets like gas, TV, home appliances, vehicle, etc in his or her IT Return and also type of business, purchase & sale values, legal fees, tuition fees, wages, etc and keep supporting documents/bills for future scrutiny of IT Department, if demanded. This information will help to estimate taxes and impose hefty penalty if false information is given.

8. Minimum Alternate Tax (MAT) from minimum Rs.100 to Rs.1000/- should be imposed on all type of businesses depending on annual turnover.

9. Honest tax payers particularly retailers/vendors/ self-employed should be given cash incentives say, 10% return back from their tax paid amount to encourage them to e-filing.

10. Any graduate or post graduate students with 15 days certified skilled training course to be allowed to file online IT returns of individuals/business whose incomes are not exceeding Rs.3 lacs per annum at a fixed fee of Rs.200/-. This will generate huge employment scope.

These schemes can now easily be implemented because 20 crore more people have opened accounts and can use Rupay card for electronic cash transaction and remaining will be forced to use banking system.

These simple actions will not only cover about 15 crore citizens under IT ambit but are also a strong move towards cashless nation to achieve over 10% GDP with curbing black money generation, terrorist funding, fake currency distribution, hawla/hoondi transactions, gold smuggling, cow trafficking, etc besides huge employment generation scope.

If agreeable, kindly recommend with your suggestions & remarks and problems in implementing such schemes to our Prime Minister for his active consideration. more