NECESSITY TO BRING BACK THE CORRUPT MONEY

First and foremost one should understand the term BLACK MONEY is a misnomer. The black money is nothing but an outcome of the inefficiency of the govt.,. If the govt., had some rationality, it would have levied the tax reasonably to the extent of people willing to pay the tax on their own. Since the govt., like sucking the blood, levied the tax to the limit of over burdening the tax payer and this makes the tax payer hesitate in paying tax. Normal tendency for any human being is, not to part with his hot earned possession and if anybody or any agency tries to snatch it, the person will naturally hide it somewhere and keep it safe. This is the reason behind the accumulation of the INTERNAL black money. Technically speaking this is not black money at all.


“Regrettably, our high taxation regime in the past eventually ended up encouraging tax evasion… The early decades after independence witnessed India with high taxation rates, prompting people to evade. The capacity of the State to detect evasion was less than adequate. Over the years, India has slowly started moving towards moderate rates of taxation,” he said, adding that the Modi government was still committed to reducing the corporate tax rate to 25 per cent from the existing 30 per cent over the next four years, a promise Mr. Jaitley had made in his Budget speech.


The internal resources of the nation are hidden in the form of black money, because of the mistake of the govt., by levying more taxes. It is a pity to highlight that levying of the service tax is really a blood sucking process under taken by the govt.,. If the govt., continues to follow its principles on levying the taxes, internal black money will also increase like the blocked corrupt money which is running into lakhs of crores of rupees.

Thus when the govt., reasonably levies tax there is no reason why black money should be present in the country, that too to a very large proportion. The govt., the bureaucrats, the business circle, individuals join hands together and the country is ruined because of their policies and its implementation. So, one should keep in mind that the internal black money is NO BLACK MONEY AT ALL. Hence, the govt., should allow the flow of money by minimum taxing.

However, in the case of CORRUPT MONEY the tendency of the corrupt money holders is entirely different. They go out of the way in finding the loop holes in the laws of the nation and utilize them to their advantage and thereby the national resources are swindled.

Thus, there is a vast difference between, the black money and the corrupt money. The black money can be easily brought back to the national resources by simplifying the taxation pressure. However, in the case of corrupt money, it has to be retrieved through some means. The means should also be effective in the sense that the retrieval time should be very minimum, say for example 2 to 3 months. This is because, if the retrieval is delayed, more and more committing of suicide by the poverty stricken like the farmers will increase day by day. The committing of suicide by the farmers in Karnataka recently stands as a solid example.

Therefore, the govt., should act very fast in recovering corrupt money. If the govt., takes the course of the law it will be understood by the people that it is a time delaying tactics.

So far, the country hasn’t seen any major case involving huge amounts due to corruption getting cleared before minimum of 10 to 20 years. Even then, the wrong doers can gain time through appeals using their financial strength. Therefore, just like in the health sector, if Allopathy is not able to produce a desired result or cure, people restore to alternative medicine. Here also, govt., should try to adopt alternative means as law of the land has failed miserably in recovering the corrupt money so far.

Similarly, the govt., should adopt some alternative means to enable the corrupt money holders to fall in line with the nation.

FM calls for greater use of plastic money to curb use of black money

THE Union Finance Minister, Mr Arun Jaitley, said that there is need to take steps to encourage people to use more and more accounted money and discourage the use of unaccounted currency. In this regard, the Finance Minister said that with the progress in the growth of economy, more and more people should be incentivized to use plastic money such as credit cards, Rupay cards and cheques or any other negotiable instrument. They should be discouraged to use hard currency or unaccounted money, he added.

The Finance Minister has recently said, that the government was taking several other steps to curb black money transactions within the country. The government is at an advanced stage in considering making it mandatory to provide PAN card details for cash transactions beyond a certain limit, he said. “The monitoring regime of the income tax (department) has been strengthened and… its ability to detect large cash withdrawals, or large cash transactions which enter the system, is being strengthened”.

As these steps will curb the use of  black money in the country, The Govt., may also consider the following steps for the Retrieval of Corrupt Money,

• Instead of bringing corrupt under book, Govt. may request the corrupt to deposit their money in to the Govt. Treasury. No tax may be levied.

• On the other hand even an interest may be paid to the money so invested as it ceases to be corrupt money once it is deposited.

• The money may be invested in huge projects likes Inter linking of river etc., which will create large job opportunities directly and indirectly. Thus economy will develop in leaps and bounds.

• The govt., may also set a time limit like two months or so for its convenience.

• If the corrupt refuses to oblige, stringent laws like ‘cancellation of citizenship’ may be brought in to force.

The PM’s hands must be strengthened by every citizen in the issue related to retrieving corrupt money. Then only, effective tax regime will be possible; inflation may be under check and so many developments will be possible.



 

 

 

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4 Comments

  1. Vasudevan V

     /  October 12, 2015

    The advantage every politician enjoys is that they know the people have very poor memory. Even after the failure of the compliance window, there seems to be no reaction from the public and they’ve shifted their focus to other issues. The FM too after threatening that their is going to be severe punishment, hasn’t taken any further step. This shows the govt is not at all willing to unearth the black money and know how to divert the attention of the people from one problem to another. Some brave heart must come forward and lead people by making a national movement, Until then nothing will happen.

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  2. Everyone wants to earn money. Earning capacity depends upon one’s ability to harness what he has learn t, and the uniqueness of his selling point. Unfortunately our country is besieged by many narrow minded self centered political personalities, when they assume power they ignore virtue and ethics and are focused on amassing wealth. Obviously this money can not be publicized, needs to be hidden from the eyes of law, as its source is not legitimate. Then to safeguard this money the bureaucracy is roped in to device methods to conceal it. Hence this structure of the government too gets corrupt. Now it is the turn of law enforcing agencies that are responsible to implement that law, they too get corrupt because they knew that their political bosses have accumulated wealth in wrong ways! Now from the bottom to the top every stage there is corruption and black money. Now if any measure is taken at any level it has to be implemented at all levels and the system being corrupt and there are at these levels people who could be affected by these measures, only a half hearted cooperation. We must strengthen the value system of our education, avoid excessive influence of western culture on our way of life, and control media to make it behave responsibly. these would curb black money generation.

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  3. Sairam

     /  October 30, 2015

    Very well said. Chanakya had said that a King should take tax in the same manner as a bee takes honey from a flower. The flower does not feel hurt to part with some honey. Today’s taxation policies definitely makes one hide on’s money

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  4. V Swaminathan

     /  November 15, 2015

    Points OK The real Black money is the corrupt money of the Politicians only. That quantum is much more than individual (hidden) Black money. Politicians ruling the country, framing laws and you expect them to bring this money then it is a dream only. God save india

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