To curb the black money in the economy, finance minister has come up with a new provision in the current budget. Which says every transaction through cheque, draft, ATM above Rs 10,000 will be liable to tax at Rs 10 for every Rs 10,000. This will help in bringing the payments made by businessmen, who otherwise do not pay tax but make payments through cheque/DDs, to the notice of the Governments through Bank reports.
But the funniest part is… the same is applicable to ATM’s too. And now every bank will be required to install new ATM machines, which will deduct the appropriate amount from the money withdrawn. As the current machines provide you with cash in the denomination of Rs 100 or above or maybe Rs 50 or above in some cases. Unnecessary waste…..
So after these provisions come into effect, the next time I have to withdraw Rs 20000, I will get Rs 19980. But if I need exact 20000, i need to withdraw a little above 20000, maybe by applying an appropriate formula :banghead:
The demands of amending this provision, so that it’s applicable to Rs 50,000 and above, has been rejected by the Finance minister.