HOW TO BANISH THE BLACK MONEY ?

Well  Begun  is  Half  Done  !

In respect of curbing the Black Money , following report appeared in Hindustan Times ( July 15, 2016 ) :

SIT on black money has recommended :

*  Banning of Cash transactions of over Rs 3 lakh

*  Individuals restricted from holding more than Rs 15 lakh in cash

*  Enactment of an Act to declare such transactions illegal / punishable under law

Revenue Secretary , Shri Hasmukh Adhia added :

*  Legislative changes required for both suggestions to be implemented

*  Limiting cash transactions would strengthen archaic laws and improve enforcement action

*  SIT recommendation is to limit cash movement

*  We are waiting for public comments before we take a view on implementing these suggestions

*  SIT had taken into account big cash recoveries made by law enforcement agencies from time to time and

    concluded that the cash transaction limit would succeed if there was a similar cap on Cash holdings

Congratulations on a good beginning  !

I am sure , citizens will have some questions about these proposals, such as :

*  Will the Cash-Holding limit also apply to Companies ( partnership / private ltd / public ltd ) ?

   Especially those Companies which pay out monthly salaries in cash to employees on 7th of each month ?

*  Will this limit also apply to NGOs / Political Parties / Charitable Trusts / Hospitals / Govt Agencies etc ?

    In such cases , who ( which person - CEO / CFO / MD / Trustee / Party President / Secretary ) is responsible ?

*  Will separate limits be applied to ( A ) Cash in bank lockers  , and ( B ) Cash in home lockers  ?

*  What powers will the Income Tax Authorities have to raid / inspect  , " suspected " lockers , especially the

    bank lockers ? Would they need to obtain a prior warrant ? from which Authority ? Can these lockers be opened

    even in the absence of the concerned owner ?

*  What amount of punishments are envisaged for those found guilty of paying and receiving ?

*  Will enforcement of these proposal require an army of 1 MILLION inspectors , considering that there are over 50

    million individual tax payers , apart from 40 million MSME establishments in the country ?

MY  SUGGESTION :

#   Whereas this is definitely a step in the right direction , it must be thought through very thoroughly so that

      ordinary / innocent citizens are not harassed on mere " Suspicion " of holding more than Rs 15 lakh in cash .

 #  The raiding / inspecting agency MUST have some IRREFUTABLE PROOF that a particular cabinet / locker / safe ,

      contains ( beyond an iota of doubt ) , an accumulation of currency notes exceeding Rs 15 lakh , continuously

      for a period of 7 days in a row ( - and further proof that this ILLEGAL amount consists of the SAME currency

      notes and not different combinations of currency notes , over that 7 day period )

 #  Any number of shops / establishments , which accept payments of under Rs 3 lakhs in cash from dozens of

     customers in the course of a working day , may have , even Rs 20 lakhs in cash at the end of the day !

     It is a normal practice for all shop owners to take the cash home at the end of the day and deposit it in their

     bank account , the next morning

     There must not be any harassment of such shop-owners by the concerned Authorities

#   The only way these proposals can be implemented SMOOTHLY and in a FOOLPROOF way , is to implement my

      following old suggestion ( sent to Policy Makers , many times in past one year ) :

     *  Discontinue paper-based currency notes of Rs 500 and Rs 1,000

 

     *  Introduce plastic currency notes of Rs 500 / 1,000 which are embedded with RFID sensors

    *  Assign to each such note, a IP V 6.0 address , linked to its unique note number

    *  Set up a IT-enabled Technology Platform which will constantly monitor any accumulation of Rs 500 / 1000

        RFID embedded notes in excess of Rs 15 Lakh within an area of ONE square meter

Not only this IT-enabled Technology Platform show up all cabinets / lockers having such accumulations ( on the

GPS maps of IT Department's mobile app - BLACK-MAIL ) but it will also provide irrefutable proof of violation

And , a frugal extension of this technology will even create a dynamic CURRENCY MAP of entire country by tracking

the movement of each and every currency note ( Rs 500 / 1000 ) , throughout its life !

And the CURRENCY DENSITY of any State / City / Street  !

No need for an army of inspectors , additional administrative machinery , search-warrants , " Panch-Nama "  !

No chance of frivolous litigations on part of the so-called " Aggrieved " !

I do hope , our policy makers will cease this opportunity of a life time ( especially in view of forthcoming elections )

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15  July  2016

www.hemenparekh.in / blogs

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with regards,

hemen  parekh

www.hemenparekh.in

Marol , Mumbai , India

hcp@RecruitGuru.com

( M ) +91 - 98,67,55,08,08