White Holes of Black Money ?


Astrophysicists say , even light cannot escape a black hole

Closer at home in India , even the most stringent laws have not stopped the Indians from siphoning out their undeclared income to secret bank accounts in 40 odd Tax-Haven nations – the White Holes of Black Money  !

Depending upon your source , the amount varies from Rs 25 lakh Crores to Rs 90 lakh Crores

The exact / actual amount is itself , irrelevant

What matters is :

*  In those foreign banks , there are lakhs of ” Secret / Password-protected ” bank accounts , belonging to Indians

*   Those countries are refusing to divulge these accounts to Indian Government, under some or other International Law / Convention

*   India has no extra-judicial influence over these countries to force them

*   Economies of these countries do not depend upon trade with India

These economies depend upon those secret accounts  !

Of late , some people have suggested passing yet another law to declare all such black monies, illegally stashed abroad , as ” National Property ”

Sure  !  Can be passed in BJP controlled Lok Sabha in 4 hours  !

Like all previous laws , that won’t make any difference

In the meantime , let SIT debate and deliberate and dither , for ever  !

No harm in persevering , even as those Rs 90 lakh Crores become Rs 900 lakh Crores  !

Do our Politicians /  Babus /  Janata , realize that the only persons who can – and will – bring back those black monies , are those account holders  ?

Do we realize that human greed is cleverer than those laws  ?

Do we understand that no one wants to pay increasing amount of Income Tax , with each higher slab  ?

Do we appreciate that our present taxation system ( of higher tax rates , with rising income ) , prevents people from declaring all of their incomes ?

Why work harder to earn higher income , only to hand over that income to government – who will distribute it , by way of salaries to the bureaucracy ?

Do we know that our present Tax Regime penalizes honest tax payers and discourages wealth – creation  ?

Do we understand that this Tax Regime , diverts funds into unproductive assets ( eg: Land / Gold etc ) – funds , which are badly needed for nation-building  ?

Will  Mr Arun Jaitly  have courage to implement following  ?


Where one pays DECREASING , incremental  tax , with each higher slab of     income. This will encourage full declaration of all income and remove     incentive to hide income . People will insist upon receiving all payments by cheques .

” Reverse  Hawaala ” system ( converting black money to white money ) will , soon eliminate parallel economy  !


Where no questions will be asked as to the source of declared black money , if that money is invested in Government-Approved Infrastructure SPVs . Dividends / interests from such investments will be free from Income Tax for 15 years . Infrastructure should also include , Education,Health-care ,Sanitation etc

Dear  Narendrabhai ,

Applying this ( mildly  ” Out -of – Box ” ) thinking , you can raise Rs 1000 Lakh Crores , and build those 100 Mega-Cities and create those 100 million jobs

*   hemen   parekh   (   04 June 2014 / Mumbai  )



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