Modi’s government is giving shock after shock to the black money holders. After the Income Disclosure Scheme (IDS) which ended in September 30th, where people can voluntarily pay the tax for the unaccounted money and can convert it into white, Modi’s team came up with currency strike. Now, black money holders are not able to save their money as the money in the form of cash will become useless after December.
They can’t deposit the money in the banks as it would be under IT department radar. Persons depositing more than 2.5 lakhs within the window period of 50 days will be subjected to penalties and raids. In this scenario, the unaccounted cash deposits above the threshold limit will be subjected to 50% penalty and 25% of the remaining amount will be locked in for 4 years.
People can’t take this locked in money for 4 years. Hence, they can just use the 25% of the money which they deposited above the threshold for the next 4 years. This is a very strong way to control the black money holders.