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 ?
* INVERSE TAXATION REGIME
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 !
* AMNESTY SCHEME
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 )