Demonetization is the current and most happening topic and there are lot of questions in everyone’s mind. At Filing Mantra, we would try to cover impact on salaried employees on Demonetization.
1. For ordinary person such as employees, small businessmen, vendors, drivers, the fake notes looks similar to the original notes.
2. The biggest benefits for the employees are, it is going to drastically affect the corrupt practices. Employee sector is the major victim of such practices. Further this will help to track people who are having large sums of unaccounted cash or cash on which no income tax has been paid because many people who earn black money keep that money as cash in their houses or in some secret place which is very difficult to find and when demonetization happens all that cash is of no value and such people are left with two options one is to deposit the money in bank accounts and pay taxes on such amount and second option is to let the value of that cash reduced to zero.
3. The Salaried employees who received salary by cash and don’t have PAN and want to deposit more than 50,000/- , the bank will ask PAN. PAN can be procured very easily ,
4. Employees who are getting salaries into their back accounts, demonetization would not impact them, as these employees file their tax returns and such income is white income/money. Those employees who have not yet filed their tax returns, its advisable to file it now.
5. People disclosing their income by depositing money in their bank accounts government gets a good amount of tax revenue which can be used by the government towards the betterment of society by providing good infrastructure, hospitals, educational institutions, roads and many facilities for poor and needy sections of society.