Rahul Mehta Gandhinagar LsCandidate
How CAs are planning to convert old notes into gold within hours !!!!
.
Lets say X has Rs 500 notes and he trusts Y whose annual income is below Rs 80000 per year.
.
(1) X and Y can go together to bank
(2) Y can deposit Rs 120,000 of old notes in account of Y,
(3) Y can RTGS payment to gold seller
(4) Gold seller will give gold to X (and on paper will give to Y)
(5) Y will show Rs 120,000 deposit as income during labor work he did during diwali time
.
income tax paid = Rs 0
vat paid = 1% = Rs 1200
commission paid by X to Y = say 5% = Rs 6000
X converted his old notes worth Rs 120,000 via Y into gold, with loss of say 8% .
.
----------------
.
Say wife of Y has zero cheque income
.
Then Rs 200,000 can be converted into gold by deposited them in wife's account, sending RTGS payment to gold seller and then gold seller will give gold to X (on paper, he will give to Y) !!
.
Income tax paid = Rs 0
VAT paid = 1% = Rs 2000
commission to Y = Rs 10000
X converted his old notes worth Rs 200,000 into gold, via Y's wife, with loss of say 8% .
.
----------------
.
Say father of Y has zero cheque income. And his age is say 62 years
.
Then Rs 300,000 can be converted into gold by deposited them in wife's account, sending RTGS payment to gold seller and then gold seller will give gold to X (on paper, he will give to Y) !!
.
Income tax paid = Rs 0
VAT paid = 1% = Rs 3000
commission to Y = Rs 15000
X converted his old notes worth Rs 300,000 into gold, via Y's wife, with loss of say 8% .
..
----------------
.
Say grandfather of Y has zero cheque income. And his age is say 82 years
.
Then Rs 400,000 can be converted into gold by deposited them in wife's account, sending RTGS payment to gold seller and then gold seller will give gold to X (on paper, he will give to Y) !!
.
Income tax paid = Rs 0
VAT paid = 1% = Rs 4000
commission to Y = Rs 20000
X converted his old notes worth Rs 400,000 into gold, via Y's wife, with loss of say 8% .
..
.---------
.
How can we stop CAs from doing this?
.
This will lead to rampant gold smuggling !!!.