Dr Gaurav Bhaskar, Karnal, Haryana

Tax Reforms and Increasing Digital Tractions

India is a progressive nation and for sustaining the progress we need to promote digital tractions.
Indians are not used to digital tractions and also not proactive in taking initiatives without any benefit
from the government. To promote digital tractions and to increase the number of people accepting the
digital way, our government should come up with the following plan. This plan will not only increase the
digital tractions but also have multifactorial benefits like transparency in the collection of GST.

People should be given an option of spending the money they have in their accounts through the digital
ways and the benefit would be only 2% traction tax and no further income tax on the amount received
from bank to bank i.e through cards, wallets, cheques, NEFT or RTGS or other digital ways of traction of
money. This 2% traction tax would be charged from the beneficiary and not the person from whose
account the money has been deducted. All the cash tractions would be charged at a flat tax rate of 30%
with no other tax benefits. Any amount deposited in the bank in cash will also be levied a tax of 30% flat
rate. All the traders should be ordered to have the option of accepting money digitally in more than one
way i.e cards and wallets or other banking applications.

Benefits of this Move

1. This will allure more and more persons to adopt the digital ways of tractions as less income tax
on the money accepted digitally. Even the traders will also be happy to collect money digitally
due to less income tax.
2. Reduce the fake currency in the market and chance of circulation of fake currency in the hands
of common man.
3. Better transparent system to collect the GST from the people. It will be easier to collect GST and
income tax from the Public.
4. Reduce burden of income tax on common man as most of the common man get salaries in their
account as white and will be levied less tax as only 2% will be deducted at source and then no
further income tax. But if they withdraw money from the bank in cash then another 28% tax will
be charged on the amount withdrawn at the time of withdrawal but no tax if money sent is
digitally from account to account
5. Traction of money will be better traceable
6. No fear among the government that reducing the income tax can make the government will
reduce the funds available to the government and the disruption of budget
7. Already lakhs of tractions are being done everyday and the 2% thus collected as tax will
compensate for any kind of losses to the government rather government will be able to collect
more taxes than now.
8. Increase money in the hands of public due to less taxation will increase the purchasing power
and no fear of income tax will give a boost to the economy and will help to create new job
opportunities in the country that will further strengthen the nation. Each and every citizen of
India will then be contributing to the development of the nation rather than only few people
who pay taxes and the rest take the benefit of that money
Dr Gaurav Bhaskar
Mann Ki Baat Page 1