He briefed upon the history of demonetisation undertaken in India in 1946 and 1978. “In comparison to a mere 30% share of Rs500 and Rs1,000 denomination notes in the economy in March 2002, in March 2016 a sky-rocketing 85% of high denomination notes existed in the economy,” he added.
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Newspapers this morning report that, on Tuesday ( 29th Nov ) , government will introduce in Lok Sabha , an amendment to Income Tax Act
As per this ( expected ) amendment , Black Money holders would be able to deposit , OLD notes ( Rs 500 / 1000 ) into their OWN bank accounts, with following proviso :
# Those willing to invest in GAREEB KALYAN YOJANA Bonds :
* Deposit old notes { before 30th Dec } and inform IT DEPT, desire to avail of Bonds
* Pay 30 % tax + 20 % penalty on this " Disclosed " but " Unaccounted " money
* 25 % locked in for 4 years in Gareeb Kalyan Yojana Bonds ( at 0 % interest )
* Keep / Use balance 25 % for PERSONAL USE
* Protection from further prosecution
# Those failing to avail of GAREEB KALYAN YOJANA Bonds :
* Deposit at any time ( before or after 30th Dec ) but fail to inform IT department
* Pay 30 % tax + 60 % penalty on this " Undisclosed " AND " Unaccounted " money
* Keep / use balance 10 % for PERSONAL USE
* Face prosecution if unable to explain ( - and possible 4 year jail term )
Dear Shri Narendrabhai :
If true , what you have planned is an improvement over the type of " Amnesty " that I had suggested in my email of 15 Nov 2016 ( to you and your Cabinet colleagues ) viz ;
{ http://myblogepage.blogspot.in/2016/11/take-wind-out-of-their-sail.html }
* Black Money Holder to deposit 100 % of his hidden / unaccounted money in specially
created Bank Accounts of :
Prime Minister Relief Fund / Armed Forces Relief Fund / Environment
Rejuvenation Fund / Pollution Solution Fund / Ban Mal Nutrition Fund ...etc
* No need to reveal identity / source of funds / Upper limit of deposit
* No prosecution but can keep / use 0 % for PERSONAL USE ( 100 % surrendered
to Govt )
HOW IS THIS AN IMPROVEMENT ?
Considering the following :
* As of yesterday , some Rs 65000 crore have been deposited in Jan Dhan Accounts
* At an ave of Rs 50,000 deposit per account , this may well represent 130 lakh accounts
* That is , deposit in 10 lakh account EACH DAY , for past 13 days ! And no letting up !
* But , in all , there are 25 Crore Jan Dhan accounts
* If Rs 2.5 lakh were to get deposited in each, that would amount to Rs 62.5 lakh*cr
* In a written reply in Lok Sabha last week , Minister of State for Finance , Santosh Kumar
Gangwar said that , as of Oct 31 , 2016 , 238 prosecution complaints have been filed and
and properties worth rs 18,866 cr have been attached
* Based on the information submitted by Indian Authorities to the US as part of
cooperation , the INSCR ( Integrated Network for Societal Conflict Research ) states ,
" ... the government has not won any court cases involving money laundering or
confiscations ... Money laundering investigations without a predicate offense are rarely
successfully prosecuted in the Indian judicial system and even if they are , the resulting
punishment is often minimal "
* As pointed out in my earlier E Mail ( 23 Nov ) , trying to prosecute few lakhs ( may be a
few crores ) of Jan Dhan account holders is SIMPLY IMPOSSIBLE !
In light of the foregoing and that proposed amendment to Income Tax Act , it would be
reasonable to assume that , between 01 Dec and 31st Dec , we may expect :
# Rs 10 lakh*crore to get deposited in bank accounts and declared to IT department
# Of this , Rs 2.5 lakh*crore worth of Gareeb Kalyan Yojana bonds to get issued.
How can we use this money for the ultimate Gareeb Kalyan ? Here is my suggestion :
Our 20 cr citizens below the poverty line ( BPL ) comprise 5 crore GAREEB families
If this bond amount of Rs 2.5 lakh*crore was to be deposited into the Jan Dhan bank
accounts of these 5 crore families , that would mean Rs 50,000 for each family !
And that simple arithmetic would save 12 lakh children dying from starvation each
year ! I cannot envisage a better use of BLACK MONEY !
# Political Parties handing over their own UNACCOUNTED monies to their loyal supporters
to deposit into their own bank accounts and buy those BONDS !
Retaining 50 % is any day better than losing 100 % !
Of course , when the Income Tax amendment gets introduced in Lok Sabha on Tuesday
expect the Opposition Parties to label NDA government as the biggest HAWALA
operator , who wants to compete with the road-side operators ( whose current going
rate is 30 % ) and converts your Black Money into White Money by taking 50 % cut !
Dear Shri Narendrabhai :
With the proposed Income Tax amendment , you would have won the current battle
But , in order to win the WAR ON BLACK MONEY , I request you once again to ,
EMBRACE THE INEVITABLE
{ http://myblogepage.blogspot.in/2016/11/embrace-inevitable.html }
---------------------------------------------------------------------------------------------------
26 Nov 2016
www.hemenparekh.in / blogs
Such cases donot go to court and thus people suffer.
Now this will start a new era of terror from IT officers. Has any laws been amended where the even ordinary person if harassed can find some solace.
Since new Laws are more stringent for those caught , it might be cheaper to pay the IT officer than pay the full amount.
India will suffer a lot in the long run as haste makes waste is being followed.
Expose Bribe Seekers on the Internet.( Bribe Victims Can Remain Anonymous.)
Check Fresh Generation of Black Money
Any Govt. officer convicted of corruption should be dismissed from service.
Corruption Prone Govt. Departments / Offices like RTO, Patwari etc should be identified and all their activities be put on line ( Public Domain )
Say no to Corruption / Bribes
-----------------
In PWD / CPWD , there is an unwritten Code of Percentages a Contractor has to give to the SDO, XEN , SE.
Any Govt. officer convicted of corruption should be dismissed from service. There should be no job security on this count.
Check Black Money in Politics / Elections Election costs, now , can be reduced to a minuscule if voting is done by Aadhar registered Mobile Phones.
What about money laundering done by Rich / Super Rich Farmers ? They do not pay any tax . Money laundering of their other incomes as agricultural income. Income Tax exemptions are only for Actual Tillers ( Plough Weilders ). But , in states like Punjab , Rich landlords give their land on Lease ( Theka ) to the landless cultivators. These absentee landlords pocket the Theka money as Tax Free. Govt should take against those Revenue officials ( Patwaris ) who show absentee landlords as actual tillers in the Girdawaris. Many NRI s who have not set foot on India for many many years are shown as Tillers . They take the benefit of Free Electricity / other freebies while negotiating Theka s.
Reduce Taxes Reduce Stamp Duty on Land Registries. During British Times , Land Registration Rates were around 1 to 2 %. ( Now , they are 7 to 10 % ). Earlier there was Law of Pre Emption ( Haq -shoofa ) where land owner of contiguous property could acquire the sold land at Land Registration Rate + 10 % or so. So , to prevent Pre emption and take advantage of Low Stamp papers , many times Registrations in British times , were done at higher rates than the negotiated rates ( opposite of today )''