The Hindu Business Line : It costs Rs 10 to wipe off the `black' mark

There are long queues at bank branches, each person with a `tenner' in hand, saved from taxed and banked salary money, to finance a Government that seems to have run short of better ideas.

EVER since Chiddu sent shivers by bringing in banking cash transaction tax many people have been taxing their brains to first find enough cash to deposit in their accounts, so that when withdrawing Rs 10,000 they can give Rs 10 to the Government, and project themselves as not being part of the `black economy' that the Budget is eager to bracket everybody into. That fervour explains the long queues at bank branches, each person with a `tenner' in hand, saved from taxed and banked salary money, to finance a Government that seems to have run short of better ideas. To add to people's woes, there are many questions unanswered. Such as:

What's TBT?

Thiruvalluvar Bus Transport, I'd like to say, though what the FM has in mind is taxable banking transaction, which means withdrawal of cash by whatever mode exceeding you-know-how-much on any single day by a person.

Are you a `person'?

Well, I'm. But I guess you're interested in the legal meaning, so I'll have to see Sec 2(31) of the Income-tax Act. It defines `person' as individual, HUF, company, firm, association of person, local authority, and so on. Finance Bill, 2005 adds to this list "an office or establishment of the Central Government or the Government of a State." So, the check against letting money enter the black stream will work against all these persons, not just you.

Hey, I found a bundle of cash on the floor and put it in my pocket!

Wait, if it is more than Rs 10,000, you have to pay Rs 10, please note. This applies to those who want to evade the tax, and so are planning to break in to take the cash they need. The rule is very clear, and speaks of withdrawal "by whatever mode."

Can I get change in the bank?

Of course you can. But don't complain if you give 10 Rs 1,000 notes and the teller gives you Rs 9,990 in return. Since the Finance Bill is silent whether this is a TBT, the clerk in the bank may play safe and deduct BCTT.

What's this trail business?

If you were to ask the FM this question, he'd yell, "You do not have the information about cash withdrawals that I have. You don't know how the system works, you don't know who withdraws these cash. You... You... " You thought you can draw the money, and go happily spend it because that was your pay that had suffered TDS. No, you should spend Rs 10 less, says Chiddu. You thought that any money coming into the banking cycle is clean. No, they found some black stains in some notes. You thought you're withdrawing cash, but Chiddu knows the big fish withdrawing big cash. You...

Should I give them a list of what I'm going to spend the money on?

That's a good idea. In fact, it'll also help you plan your expenses better. However, if you say Rs 8,000 for vegetables, they may set an inspector on your trail to find what you do in the market; so you better explain there's a marriage in the family and also enclose an invite. If the money is for the silk sari you've promised to get your wife for her birthday, they may relent if the colour is not black. And if you say you're going to see Black, they may ask for complimentary tickets!

Oh, I almost fell down, you see!

Perhaps, Chiddu pushed you a bit hard into the cheque economy. Just dust yourself off and get on with life.

SayCheek@TheHindu.co.in

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