Transformation of India- ELIMINATION OF "BLACK MONEY"
Elimination of so called "BLACK MONEY" fueling corruption and inflation should be on the top of the agenda of the Government. I have been suggesting and writing to all concerned including FM that it can be achieved through demonetization but have not received any positive response. Simply stated Reserve Bank of India need to redesign and print new currency notes, preferably on plastic paper, and replace the existing currency to the limited extent of money (accounted cash in the books) held on a notified date by all entities including corporate bodies, firms, HUFs, Trusts, Political parties, individuals liable to income tax. After replacement the Income Tax authorities should be entitled to verify and check the correctness of such replacement and any willful wrong doing should be liable to exemplary punishment. As regards individuals or firms not liable to file tax returns these may allowed replacement of cash in hand to the extent of their one months estimated earning. This concept can be refined through discussion but since it is a highly sensitive issue it has naturally to be treated as top secret by the Government. more
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black money is a brothel money more
External black money is a bit difficult to bring back but with the determination of Mr Modi it should be possible. The growth of INTERNAL BLACK MONEY is also an equally big menace and all steps to be taken to stop this. The first and most effective step is to demonitise the Rs. 500 and 1000 Rupee notes and withdraw them with circulation. This was done in the early 90s and was very effective. The Govt can also levy a 40% income tax on the declared amounts so that the government can earn huge revenue and bring black money into accounts. Further all cash transactions of Rs. 50, 000 and above should be banned by strengthening the existing laws and cheques should encouraged by giving incentives. Use of debit cards should be more encouraged by providing incentives. This also reduces the work load of Banks who are already suffering with acute shortage of staff. Real estate is another area which breeds huge black money. Tax rates should be reduced for encouraging registration for market values only and heavy penalties should be levied for under value registration.
Normally tax route is preferred for increase of revenues which results in penalising the honest tax payers. Why don't we think of increasing penalties for offences which not only helps increasing revenue collections but also curtail the offences. I understand that during the recession in US certain states resorted to this means and were very successful in mobilising resources and control the offences.
V.Raghunatha Sharma Mysore more