Demonitization has had its effect for almost a month now! Positives and Negatives are discussed thoroughly everywhere.
Women, Stay At Home Moms in particular are the ones who have been worst affected too.
In India, around 60 to 70 percent of all transactions are cash transactions. By the Government’s step of withdrawing 86 percent of circulating currency, has India’s fast growing economy been burnt down?
Or will this step really cure the disease?
We need to wait and watch.
However, with only half of the nation having bank accounts, there is certainly going to be tough times ahead.
Though tax payers need not worry about this demonetization, we all certainly need to know how to cope up with this situation and handle it vivaciously.
Reason Said Behind Demonetization
The important reasons for demonetization as stated by the Government are
– Eliminate Black money from the economy
(Still confused whether it is money or black money)
– To lower the amount of cash circulation which is the direct cause of corruption in the country
(Oh! lets not forget the loads of new currency caught from Bangalore and Kolkota)
– To eliminate the fake currency that is used for terrorist activities in India.
(Seems some school boys did a color Xerox of the new currency and used successfully
How Should Moms Cope
With the sudden crash crunch, panic is the usual expected effect. This is what every individual can do to cope with this situation.
At Home Moms generally save money from everyday expenses and keep aside for future use. Some of you might have done this without the knowledge. SO what should you do with the cash in hand.
- Making Cash Deposits
If you are making a cash deposit more than 2.5 lakhs at a time or more than 10 lakhs in a year, do not be worried about the Income Notice.
It is true that deposit over 2.5 lakhs in the 50-day window might attract the Income tax’s attention.
Be prepared with proper documentation to prove the source of the deposit in case of an enquiry. You do not have to get scared, whatsoever.
- Prepare the Cash Summary
Prepare and carry a documentary evidence like a Cash Flow Summary.
Apart from the data used in Income tax returns, the Bank accounts need to be looked at, to arrive at this summary.
- Comply with the Taxation Rules
If you have failed to file tax returns for two financial years at a row, it is high time to file the tax returns.
The income tax return filed by the individual will be matched with the cash deposit made.
- Never share your Account
If you are supporting your near and dear by depositing their money in your bank, then you are bound to justify it to the IT department.
An act of help will land you in trouble, let others help themselves.
- Use of other non-cash Facilities
In case of urgent transactions, it is better to make use of credit and debit cards, net banking and e-wallets, oh! yes don’t forget PAYTM
- Wait for Normalcy Before You Invest
In a haste, don’t try to shuffle investments. It is better to keep all the investments in stock market, mutual funds and financial instruments stationary till the situation comes back to normal.
With so much hype on eradication of black money and getting money for National Growth, moms are left confused with what to do and how to save money. Well, moms its cashless!