I am withdrawing money from bank? Pay tax! The two anti-tax evasion measures announced to check black money generation, came as a complete surprise to both parliamentarians and the common man. This step is meant to ensure there will be no amnesty scheme for black money. Just how does this work? The finance minister may have levied a mere 0.1 per cent tax on withdrawal of cash of Rs. 10,000 or more from banks on a single day, but what is the purpose? After all, why should you pay tax on your own money which you are withdrawing? And it is money on which you have already paid tax, in any case!
Secondly, the provision has not distinguished between individuals and corporates. Though large organisations deal in cheques, many small time traders and organisations still use cash mechanism to pay the bills and salaries of their employees.
In the long run as people would withdraw money multiple times in amounts less than 10,000, it would lead to more paper and administrative work in banks.
This would lead to wastage of resources both in terms of time and effort of the personnels of the bank. Wait and watch. This is roll-back time now.