· All individuals and small time business men will start showing income in bank which most of them hesitate to show for saving on income tax.
These individuals will deposit this extra money in the bank which will increase the fund flow of the bank and this will improve the borrowing cost of the bank.
·This will this impact on home loan cost, retail loan cost and corporate borrowing at a lower level. This will further impact the expenditure thus picking various industries which are right now reeling under pressure.
Income tax slab should be NIL till 30 Lakhs.
Till 1 Crore income tax slab should be 10%
Higher than 1 Crore 20%
As most of the income tax collection come from service class, this move will motivate all business class people to route all their transactions through banking channel thus wiping the black money problem and generating further revenue for the government.
All will fill easily n can deposit in to bank rather in home or purchase gold or investment in property.
