Where all Black Money is generated
I have my self experieced and like me many thousands have seen when you approach Registrar of Housing societies with your compaints on corrupt practices by Society officials, this is seen as an opportunity to make money by Ragistrar´s offices from that society´s corrupt office bearers.
2- Registration of property offices again have corruption between Builders, Agents and govt officials- Daily cash transactions as agent commission is taken to register properties which must be stopped. All these govt officials and offices are paid by tax payers money and these same people are looting common man.
3 Firbrigade offices, Municipal corporation offices are making money from builders to give permissions for fire safety, water supply, power supply, drainage, and many other permissions are given to builders when cash is paid.
4. Police stations is one such govt offices where for every thing to do money is demanded by police and the corruption in police depts is from top to bottom barring few exceptions.
All this is Black Money coming into circulation of our economy from unaccounted accounts of all involved in this second parallel economy. The Black money is generated in these govt depts like Municipal administrations in connivance with business community like builders, engineers, architects, contractors-
The BJP government after coming to power in Maharashtra must find ways to stop corrupt practices followed by these racketeers making black money and cheating the state.
This has to be scrutinized by special committees to observe how corrupt practices are followed by govt administrators at all levels. And then a new model by plugging all loopholes must be introduced for any govt procedures. With the changed model, strict punishments by new laws to govt officials found corrupt must be introduced and sent to jails for 30 and 40 years so that nobody in govt offices will have courage to take money from anyone. more
Still you have not given your opinion on implementing 2% BTT instead of multiple taxes, withdrawal of big currency notes and limiting cash transactions to Rs.2000
I agree with you all the way. If tax system is fair, compliance will be better than it is now.
When it comes to taxes, I am aware of many people who do not pay taxes claiming that whatever they give to the government through tax will go down the drain with corrupt politicians and bureaucrats siphoning off funds from government run schemes and projects. Though these may be just excuses to evade taxes, but there is some element of cynicism and despair in the minds of people that prevents them from paying their taxes.
Another reason is greed. I have seen best of the doctors and surgeons who have acquired enormous amounts of fame as well as money, still prefer to collect their professional fees in cash. Similar is the case with eminent lawyers, property dealers, contractors, retailers and jewellers. Tax evasion in such cases is not a need, nor a reaction against corruption in high places, but greed, to have more and more.
Whereas the salaried class is the most convenient target of the tax inspectors, the non-salaried tax evaders hardly have any fear of the IT department/Enforcement Directorate as they have Chartered Accountants to help them in dressing their books and avoiding taxes.
Like I said earlier, there are many many causes of black money and tax evasion. But I know that there are countries in the world that have much lower levels of corruption than our country. If all of us unite and fight against black money, we too can become a country free of corruption. more
If you go further deep into the origin of black money you will find the root cause is the unscrupulous taxation system of India. A 30% Income Tax, 12% Vat plus a multitude of taxes which forced the people to find ways to evade tax. Businessmen could manipulate accounts to evade tax. The burden of Income Tax came on salaried class and Government Servants who found corruption and bribe as way to compensate for the high income tax they have to pay. Due to tax evasion by businessmen the total Vat, Income Tax and other Revenues of Government fell down.
If the multiple taxes excluding Import and Customs Duty are abolished and a flat 2% Bank Transaction Tax on all bank credits are introduced, nobody will think of evading taxes. The total tax revenue will be much more than the present total tax collection and when all transactions are routed through banks it will increase further.
Now let us come to the point put up by Raghviderji, the donations to all political parties by businessmen and others can go by bank transfer the giver doesn’t lose anything the receiver has to give a meager 2% on the bank credit in their account. Which I think they wouldn’t mind.
A voluntary disclosure scheme can be given to all black money holders to deposit it in bank accounts only 2% will be taxed. This also none will mind. This will be extra source of income to Government.
All things will move as usual, only there will not be any black money and Government will get more tax income.
I request Ajayji and Raghvinderji to give their valuable opinion in this matter
For further details go to the link below:-
I agree with you Sir, but all this can be done with accounted white money also. more
But before all these measures are adopted we must think and go deeper into the malaise of black money. In my opinion, one of the most important (not the only important, there are many more) cause of black money is requirement of colossal amounts of money to fight elections. A citizen or a political party invariably spends crores of rupees to fight election. When in power they have to recover their investemnt with interest or with windfall profits. So when in office the politicians, helped by willing bureaucrats, police officials and business houses find ways and means of making money and most of it is unaccounted money. They need this money to get returns on their investments and then more to fight future elections. They also need to make money to build up reserves for the period that they may sit in the opposition or out of legislature.
If politicians did not need money to fight elections, at least some of them would stop others from making money. But as money is required to fight elections, the cycle carries on. more