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
2 comments:
FROM GREED TO GREAT ?
In my blog of 18th Sept , I had estimated BLACK MONEY disclosure of ( may be ) , Rs 40,000 crores , under
Undisclosed Foreign Income and Assets Act - 2015
That would have netted Government , Rs 24,000 Cr by way of tax / penalty
I was way off the mark !
The 3 month opportunity window closed two days back , with a disclosure of Rs 3770 cr , by 638 persons , netting Govt Rs 2262 cr !
Quite like , " Digging the Mountain to find the Mouse "
Now , some knowledgeable persons / organizations have estimated that the amount of BLACK MONEY stashed away domestically , could be close to,
Rs 25 Lakh*Crores !
But then , man-on-the-street guesses that to be Rs 100 Lakh*Crores !
Time and again , that common man have proved the pundits wrong !
I suppose , the common man knew all along that half-hearted amnesty schemes are bound to fail , as in the past
But pundits refuse to learn from their past mistakes !
They refuse to recognize that nowhere in the World , any Government has succeeded at any time to legislate the GREED away !
And fail to understand why NDA government is hesitating to harness the unlimited power of SUN - the almighty SUN OF GREED
By :
* Abolishing Personal Income Tax ( source of the DARKNESS of
CORRUPTION )
* Stop asking any questions as to the " Source " for all cash deposits
made into bank accounts opened under Jan Dhan Yojana
* Levy a Bank Transaction Tax ( BTT ) of 2 % to yield revenue of
Rs 15 lakh*crores , which would be 5 times the loss of revenue due
to abolition of Personal Income Tax
* Encourage deposits made into Jan Dhan bank accounts to be invested in
SOLAR POWER SPV Farms , by direct depositing of income derived (
from sale of electricity to DISCOMs ) into those bank accounts - again
free of Personal Income Tax ( setting in motion, a VIRTUOUS CIRCLE ! )
NDA is planning to harness 100 GW of Solar Power by 2020
If above-mentioned suggestion is implemented , India could harness
1000 GW of Solar Power by 2020 !
Just imagine what that could do to GDP / SELF-EMPLOYMENT / CLIMATE
Let us harness GREED to make INDIA GREAT !
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hemen parekh
02 Oct 2015
B2BmessageBlaster
@Hemen Parekh
thanks.