Explained Why BJP Govt Black Money Compliance Window fully failed

Explained Why BJP Govt Black Money Compliance Window fully failed
When MMS was PM all media channels were discussing Black Money and Corruption
But now it seems that  India has become a clean country where corruption does not happen and no Indian holds the black money.

In 1997, when P Chidambaram unveiled an amnesty scheme for black money holders, he got declarations of around Rs 33,000 crore and collected taxes of more than Rs 10,000 crore.

BJP Government and Black Money –
The Black Money compliance window opened on July 1, 2015 and was till September 30, 2015

In a statement Finance Ministry said that "638 number of declarations have been received under the compliance window declaring undisclosed foreign assets amounting to Rs 3770 crore. These figures are subject to final reconciliation,"

Thus government collected only Rs. 3770 Crore.
maximum number of declarations came from the western region of the country
Western Region states – Maharashtra, Gujarat, Rajasthan
"One of the single largest declarations is about Rs 180 crore while a number of others are of a relatively smaller value ranging between Rs 50 lakh and Rs 5 crore,"

Thus we can clearly see that BJP Government failed in the Scheme to collect Black Money.

So Exactly what happened?

Why BJP Government Failed to collect Black Money through compliance window.

Following are the few but important reasons that the Black Money holders did not declare their black money.

1-
Get the NRI Status and no worries
A Knight Frank wealth a recent report reported that Since 2000, over 61,000 high net worth individuals all dollar millionaires have relocated outside India


2-
Participatory Notes (PN) is a general name used for the investment by Foreign Institutional Investors (FIIs) through Offshore Derivative Instruments (ODIs) such as Participatory Notes, Equity-Linked Notes, Capped Return Notes and Participating Return Notes
Participatory Notes, is nothing but another name for the Black Money Investment Scheme
Participatory Notes is legal method of India which helps to convert the black money into white money legally without paying anything in taxes except Bribes and political funds

We Indian citizens have to fill documents after documents, fill KYC forms, need to give pan number, need to give address proof etc.
But rich Indians can invest billions and Millions without doing anything through P Notes.
The FIIs issue PNs to funds/companies whose identity is not known to the Indian Government.

RBI and others said BAN or Phase Out P Notes.

But BJP said we will not ban them, we will not phase out P Notes.

3- Real Estate Business – It’s easy to convert black money into white money


4- Bollywood Film Industry – It’s easy to convert black money into white money



When legal ways and methods to convert black money into white money are available legally who will declare his money and will become criminal in the eyes of law as well as end up paying 60% tax.

Only small business men who got little black money they utilized this opportunity as they realized government will only go after small businessmen for black money and will file the cases against them to show that government is doing something  no one dares to touch rich businessmen or politicians.

Unless and Until Government of India does not close the legal methods of converting black money into white money, nothing is going to change in India.

Now if BJP government is honest it will stop the inflow of money thorough P Notes and other ways then book the black money investors and their companies

Suggested Reading –

Black Money Guide to Money Laundering How to Hide Identity, Stolen assets evade taxes


Reality views by sm –

Saturday, October 3, 2015

Tags – India Black Money P Note Legal White