Monday, April 6, 2009

Black money

It is beyond imagination that government of India will be able to bring all money black or white to India. I am unable to understand when and how government will be able to ascertain the color of money until foreign bank provides true information on all accounts and Indian inspecting officers have willingness and enough resources to reconcile the same with IT return of the same person in India to assess the true colour of the money.
There are many reasons behind it. Some of the reasons are submitted below.

Foreign bank will not agree to share information with our country as long as there is mutual agreement between the two countries for mutual share of information.

As per Indian law I think even Indian bank or Indian government has got no right to share information of any account of any person in India with foreign bank or any foreign based authority.

Foreign based banks as learnt from various articles in this respect do not ask for much information about person ,opener of accounts as much as person opening account in Indian banks are supposed to provide to the banks (strictly as per KYC norms)

Income tax officials are not so much honest and sincere that they will try to catch such person. Had they been so much sincere and honest they could have caught black money at least hundred times of what amount is said to be parked in Swiss bank or any other foreign based bank. In fact it is they (IT personnel) who teach taxpayers method of saving tax and how to evade tax because they get bribe in cash or kind from such taxpayers.

Government of India is made of dirty politicians and they do not have real willingness to make such stringent rules which forces Indian taxpayers or Indian Income earners to declare the income truly, honestly and correctly in their IT returns. Because survival and development of India Politicians lies on the existence of black money only

Entire politics of India runs on black money and without help of such black money any political party or any individual contesting election cannot imagine of spending crores of rupees in election. Most of the candidates in current election has declared income and declared capital of less than one crore but he will spend not less than five crores to win the election. Wherefrom such money comes is such question which none can answer correctly.

Majority of government officers have huge unaccounted money and it is they who can afford buying a house worth more than a crore in the mid of the town. None of honest employees in any department can imagine of purchasing a house worth even twenty to thirty lacs in white money (house in India is traded in two parts, one white money and another part of cost is in black money) because real cost of such house including black money is always more than at least sixty lacs.In India there are hardly one out of 100 house worth more than a crore is registered in true value of the house. Government can easily count such houses in each town and find out real tax evaders if they are really interested to catch black money.

Obviously it s an open secret that there are plenty of black money in Indian economy and Indian government has failed to curb it despite promises and hue and cry made by several VIPs and despite shedding crocodiles tears by so many politicians. Therefore one cannot even dream of getting Indian black money parked in foreign banks. Doing politics is one thing and doing something real is entirely a different story.

Lastly I would like to suggest government of India to discard adherence of KYC norms and remove anti money laundering act and ask all banks to open account in any manner in the name of any true or false person and allow money to be deposited in Indian bank. In this way entire black money will come back either in bank or in circulation. At least money will not be parked in foreign banks in Indian banks accept money freely.

This is desirable because government of India cannot control effectively inward and outward remittances taking place through banking channel despite all claims and assurances of controlling authorities. Money going abroad through fictitious import and export still persists in trade and growing day by day. Not to speak of money being imported or exported, even arms and ammunition are being imported in disguise to spread reign of terror by terror groups and Indian government remain silent spectator .Inspite of several steps taken by government of India for last two three decades and inspite of several stringent laws in this regard to curb spread of black money transaction ,our law enforcing agencies in collusion with politicians have miserably failed to effectively enforce existing rules and ensure finish of black money from the system.

Danendra Jain
7th April 2009

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