29 April 2009

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Simple and Effective solution to deal with problem of Black money.

Simple and Effective solution to deal with problem of Black money:

What is black money?

Black money is unaccounted money, on which tax is not paid and it is not shown to tax department. In simple terms we can define black money as “money which is used to do black deeds and money which is created, earned by doing unlawful business and activities.

How the black money is created?
Following are the few examples of how black money is created.

To get favors from government the bribe is given.

To get government subsidies the gifts are given to government officials or politicians.

Political parties collect money/funds in cash which is used for elections so they do not need to show these expenses to election commission.

After this, the powerful houses that fund get the orders and subsidies from state or central government, or they get relief from tax department one or other way.

How black money is stored?

Black money is stored by purchasing lands and flats in proxy name, benami transactions.

Black money is stored in currency notes of 1000, 500 and 100 rupee notes.

Sometimes I feel that the purpose and need of 1000 and 500 rupee notes is nothing but to store and keep black money .Do you know any use for this notes of 1000 and 500,

Just think in a year how many times we common people use notes of 500 and 1000, if currency notes of 1000 and 500 are banned permanently? Will it make any difference to our day to day life and spending in the era of Debit and Credit Cards?

Do you think they will create problems for Indians?

Black money is given to terror groups; black money is invested in tax free nations which do not ask the source of income to the investor.

Simple and Effective solution to deal with problem of Black money.

We don’t need notes currency of face value more than 100 rupees.

We can even sustain economy in a currency of 50 rupees , So bank transactions will become compulsory for big transactions and with pan numbers attach to the bank accounts it will become very easy to track the every person who does big transactions or suspicious transactions.

Every bank should get right to investigate ,audit on each account and suspicious accounts information be given to special independent body of retired judges who will monitor those account transactions and further investigate the accounts and file cases against those directly, in the police stations without permission from government of India.

Today what is happening is CBI and police department has to take permission from Govt.of India, to file criminal cases against government babus which delays the matter , which helps and gives time to the criminals to destroy evidence, furthermore majority times they don’t get permission to file the complaints against government babus.

Last more than 25 years I am listening and reading about this Swiss black money?

The political parties who failed to send the request to the Swiss government. Are making us fools by again making this promise of bringing money from Swiss bank.

They say USA got the information from Swiss banks so we will also get the information.
But they are telling us half truth, USA has given the full details and source and proof regarding that accounts which were suspicious to the Swiss bank, when Swiss officials found that there is scope and usa government is right they provided them information.

Even Nepal and Bangladesh do not fear India, do you think Swiss banks will pay attention to Indian government.

They just need to make a simple rule; law and India will get freedom from local as well as international black money, Swiss money permanently.

A simple rule not to use notes with the value of more than 50 or 100 rupees.

A time frame should be fix for all the Indians to get there notes of 100, 500 and 1000 rupees be exchanged from all the banks.

After the time limit is finished government should not extend time limit, just declare that all notes with the value of more than 50 rupees are and should not be used as currency.

They are permanently banned and they don’t have status of Indian currency.

A permanent full stop to the black money .


dinesh,  April 30, 2009  

good suggestion i support it

Paul April 30, 2009  

Interesting Blog. For more information and resources regarding investments visit here- http://search.ezilon.com/united_states/business/investing/index.shtml

BK Chowla, April 30, 2009  

Our neighbours we can discuss seperately.My dear friend, allthe measures you have suggested are excellent.I have only one problem or question.Who will implement all the suggestions.Thr rouges who have slashed these funds illegally,are the ones who make and implement all the policies.It is "coalition" between Neta and Babu.A businessman only uses these two corrupt elements to further his gains.We remain helpless spectators.

sm,  May 01, 2009  

I say it this will happen after 50 or 100 years if the people like Ihm, and you and my other friends we keep blogging and keep opening eyes of the people.
spread the knowledge and one day india will see the light with home civil war hope civil war will be peaceful.

Hemal May 01, 2009  

Black Money is taken seriously at every country. But it does not translates in stoping it, instead encouraging it.

sm,  May 01, 2009  

Hemal i am not accountant but i know in developed countries there they use some formuala and then it is decided that what should be the highest face value of doller or pound.If that formula is used it shows that India should not print and use notes with face value of more than 20 or 50 Rupees.

Hemal May 03, 2009  

Yeah, SM. You have a point. I think I read this somewhere. It was an Indian Economist who had proposed this theory that India cannot print more than Rs. 20.

But there is no supporting evidence to this one. So, make all of us believe this economist had proposed a formula.

Unfortunately, i have forgotten his name.

sm,  November 14, 2009  


sm,  November 14, 2009