What is being termed as the "ArthaKranti Proposal" would indeed be an incredible and highly appreciated move if Narendra Modi is able to implement it.
But the question is whether such a proposal actually exists or is this all part of a rumor, spread to make the hard working middle income group and business owners dream of a tomorrow where they are NOT constantly hounded by the tax man. Its a well known fact what these IT commissioners have been doing for all these years.
Apparently the proposal involves two stages:
Part A -
Recall 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 deposited into bank accounts.
In 50 days bring around 15 Lac Cr to 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. From India,