CHANDIGARH,24.05.20-I am not able to understand the mechanism of OIL Companies when I pay for my Gas cylinder and within few hours, I get an amount in my latest bank account. So first I pay and get some amount as refund. Why not to take net amount and avoid multiple entries. Must be smart way to increase turnover and benefit some entity.

Similar way recently few smart changes have been announced which I bring to your knowledge to understand the implication on your Pocket head wise:-

GST: GST is received by professionals earning more than a certain amount. When We have got GST paid from our clients than why to defer its payment if Govt Account’s create fake liquidity the payment has been deferred resulting I am enjoying the money at Govt Expenses

TDS :Recently in a very big way FM has announced reduction in rates of TDS by 25%meaning When I make payment to a professional I will reduce the TDS rate from 10 % to 7.5% there by increasing liquidity in the hands of professional but ultimately the professional will have to pay 100% taxes by March 2021 thus TDS saved will be paid in full. Than why save TDS in the entire year. Even as a [professional I will have to pay entire amount of tax by March and defeating the purpose of TDS or advance tax

Provident Fund: The rate of PF contribution by employees has been reduced from 12% to 10% and employer have to pay full 12% meaning thereby the saving of employee will decrease and saving under 80 C will also decrease. That means Employee, to save tax, will have to deposit money in some other scheme or increase the contribution to PF voluntarily.NO use at all, just liquidity increased. No benefit to employer.

Moratorium of Loan: RBI has further increased target period of moratorium to August 2020.This another smart move to held lenders as they will earn extra interest on amount of moratorium period. The loan taker will get liquidity but the number of installments remain the same but period of landing will increase and loan will end after Six month of usual period. So, nothing to be happy as you end up paying more on your loan amount. So Govt is giving your money to you on which lender will charge heavy interest.

School Fee and other Bills.: Govts have deferred the payment of various bills like Electricity, Water, Property Tax, rents and School Fees which everybody will have to pay sooner or later and multiple entries and payments have to be made. Amount of Electricity, Rents, Water and school fee will multiply as you are consuming without making payments and by the time when you have already suffered a loss of wages etc. You will be forced to pay.

NOTE: Nothing comes free, you should realise as you have to pay sooner or later. Do not get be fooled, try to understand the economics of who are in power.