No Income Tax in India Modis

Next move
Raviraj Parekh

Imagine how good it is if Income Tax is abolished in India? No tax

means more money to every individual. You must be thinking is it a
joke or what? Well, it is not a joke. No income tax in India is expected
to be Modis next move. After demonetization of old high
denomination notes, the government is expected to roll out next
economic reforms and No Income tax could be one of them. Lets
discuss how this dream can be turned into reality.
No Income Tax in India is Modis next move
In order to make India Sone Ki Chidiya (golden bird) again Shri
Narendra Modi has started a fight against black money and
corruption. Recalling high denomination currency of Rs.1000 and
Rs.500 was the first step towards that. This step was in accordance
with reviving Indian Economy Arthakranti Proposal.
The ArthaKranti proposal is a well-researched scientific approach
designed to completely transform the current Indian socio-economic

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scenario.
Arthakranti Proposal has been given by a Pune (Maharashtra)
based Arthakranti Sansthan which is an Economic Advisory body
constituted by a group of Chartered Accountants and Engineers.
This funda has been patented by the Sansthan. The government is
planning to execute this proposal in two parts.
Part A
Recall and scrap old high denomination notes Rs.500 and
Rs.1000.
Introduction of new Rs.500 and Rs.2000 Notes
Old Rs.500 and Rs.1000 notes to be deposited into account.
In 50 days bring around 15 Lac Cr in banks.
Part B
Reduce Interest rate on saving bank account from 4% to 2% or
less.
Reduce fixed deposit rates drastically.
Reduce home loan rate and keep it up to 7-8%.
Implement GST by 1st September, 2017.
Abolish Income Tax for individuals.
Reduce corporate tax rates.
Introduce new Banking Transaction Tax.
It is claimed that if economic reforms mentioned in Part A and Part B
is successfully implemented India, India will be like USA. The
government has already started implementing part A. It is expected
that by 30th December, 2016 around 15 Lakh Cr old high
denomination notes will be deposited into various banks.

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From the year 2017 implementation of Part B will commence. In the

new year 2017 bank will have enough cash on hand hence saving
bank interest rate will be reduced from 4% to 2%. In addition to that
fixed deposit, rates will be reduced to 5% -7%.
Home loan and car loan interest rate will be reduced to 7% to 8%.
The reduction in a home loan interest rate will straight away benefit
real estate sector and affordable housing scheme project. The price
of real estate will reduce and will be affordable to common man.
By September 2017 the government will introduce GST reforms
where all tax will be replaced by single tax system called as GST. In
addition to the introduction of GST, it is expected that corporate tax
rate will be reduced to 30%.
Once all these steps will be executed Prime Minister Narendra Modi
will give a gift to Indians by removing Income Tax. Income of every
individual in India will be income tax-free then onwards. No Income
Tax will be the biggest gift ever by any prime minister in the history
of India.
Now a question arises that once the income tax is removed how the
government will get money to run the nation. Well, once all cash will
be deposited into banks everyone will be enforced to use banking
system for every transaction. New banking transaction tax will be
introduced. Every transaction such as cheque, Demand draft, RTGS,
NEFT, Credit Card, Debit card etc will come under this new tax
system. The rate of the new banking transaction tax will be 0.10% to
7%. Everyone including farmer will be covered under new banking
transaction tax system. The government will directly get the income
based on transactions. No black transaction will be entertained. The
strict rule will be formulated for unaccounted money and nonbanking

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transaction.
It is expected that implementation of above steps will give following
benefits.
Benefits of Implementation
Transparency in Economy
More purchase power to individual
Saving in amount of tax paid
Drop in commodity prices
Availability of Loans from bank at lower rates
Terrorist and anti-national activities will be eliminated
Significant growth in the employment
Indian economy and business will be globally competitive
Arthakranti - What is it?

It is indeed a very good concept. If it is implemented effectively India

will surely become a global economy with a competitive edge.
As of now, no confirmation is received on the removal of income tax
and implementation of banking transaction tax. However, it is
indicative that Modi government will take steps suggested above
after demonetization move.
Do you think demonetization of the old high denomination is correct
step by Modi Government?

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Do you think ArthKranti proposal will be beneficial to our country?

I support the initiative of Modi government. If you support this
initiative do share this post with others on facebook and twitter.
Hope about dreaming zero tax India will become reality soon.

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