For Pay Day Rush, banks cut withdrawal limits, ask companies to give prepaid cards.

BANKS ACROSS the country are bracing for the next big test of their liquidity position — meeting month-end demand of lakhs of salaried employees and pensioners. To beat the imminent cash crunch, banks are setting internal daily cash withdrawal limits per account, while the government has asked private companies to make payments to employees digitally.

Banks have also suggested to large companies that they should give prepaid payment cards to their employees in lieu of cash, industry sources said.

We are making arrangements so that there aren’t any problems in the days to come. There should not be any inconvenience to the salaried class, pensioners or any section of society. We have made arrangements, and will be able to say whether these are adequate or not only on the day when money comes into the accounts of pensioners and salaried people. We’re hopeful that there won’t be any problems,” said a top official of the Bank of Maharashtra.

Original Source: http://bit.ly/2gTWYym

Black Money Tax: Government's New Income Declaration Scheme in 10 Points.

With the ban on 500 and 1,000-rupee notes now more than two weeks old, the government has proposed new rules to tax black money that is being unearthed. The bill was submitted on Monday for parliament's review by Finance Minister Arun Jaitley as the government is being attacked by a united opposition over its sudden withdrawal of 86 per cent of the notes in circulation to check black money and corruption. The move has plunged the country, especially rural India, into a major cash shortage.

1. The old 500-and 1,000-rupee notes must be deposited in banks by the end of the year. Deposits over 2.5 lakhs will be studied by tax officials.
2. Those who acknowledge they have placed black or previously untaxed money in their accounts will pay 50 per cent in a combination of levies and taxes.                                                                                                                                                                                                                       Original Source: http://bit.ly/2g0cnc2