Friday, October 2, 2015

AAP on central govt’s black money disclosure scheme :

Narendra Modi government has announced that its black money disclosure amnesty scheme has yielded a disclosure of merely Rs 3770 crore. The Government will get sixty per cent of this money as penalty and tax. This means more than Rs 1100 crore will remain with the tax evaders as legitimate tax paid money.
This is a joke on the people of the country. Mr Narendra Modi had come to power on the promise of bringing black money within 100 days and had also promised rupees 15 lakh in the account of every Indian. Now with disclosure and estimated tax realization announced by the government, it can only deposit only 18 rupees in the account of every Indian.
The then UF government had launched a similar scheme called Voluntary Disclosure of Income Scheme in 1997. This scheme had yielded more that Rs 33000 crore. The Indian economy has seen an eight fold growth in these 18 years. Disclosure of mere Rs 3770 crore only underlines monumental failure of Modi Government on the black money front.  

Some facts
  • Estimates suggest India';s black economy accounts for nearly 50% of its GDP. (India’s GDP is Rs.130Lacs croreapprox, then it means black money is about Rs.65Lac croreapprox). PM has previously quoted it to be Rs.80 Lac crore.
  • Only 10% is stashed abroad; 90% remains in India.
  • There are about 90 significant tax havens across the world.
AAP would like to ask the following eight questions to the BJP-led NDA’s central government :
Question 1) Prime Minister Modi had previously said that Rs 80 lakh crore is the estimated black money. In his tenure of 16 months so far only 0.05% of what was promised in 100 days has been achieved. Will the PM confess that he misled the people of India while seeking votes on false pretext?
Question 2) With Rs 3,770 crore declared black money, recovery/tax estimated to be collected on this Rs 2,262crores, and with 2011 census figures of 121 crore population, a disgraceful figure of Rs.18.68 per citizen is arrived, while Rs 15 lakh was promised? Will PM Modi publicly accept his government’s failure?
Question 3) PM Modi in his Independence day speech claimed that Rs. 6500 Cr has been declared under the compliance window of the new law. He said "so far, Rs. 6,500 crore of undisclosed income have been declared."
Now the figures shared by the Government is Rs.3,770 crore. Will the BJP Government come clean on this? Was the PM Modi, again, quoting wrong figures?

Question 4) 
Provisions of BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 are well covered under the existing laws of the land. This act was never designed to tackle the menace of illicit money. It was a PR exercise.We would like to ask PM Modi’s government come clean on this and explain how is this legislation effectively different from the existing set of laws?
Question 5) Statements have been issued by senior bureaucrats of the Government of India that anyone who has not disclosed illicit money and assets kept abroad by the stated deadline, they will face severe consequences. Since most of the money goes out via ';layering';, the true identity of the person controlling an illegitimate account abroad is hidden. If people are not caught then these provisions will be mere paper tigers. We urge the Union Government to speak on the fact whether they have designed a mechanism to catch the offenders?

Question 6) Most of the illicit money which is taken out of India, is brought back and legalised by opaque instruments like P notes and investment by companies registered in Tax havens like Mauritius etc. which allow the holders of this money to remain anonymous. We would like ask the Government as to when will they disallow such opaque instruments like P-notes, which is a mere administrative decision?
Question 7) If 50% of the economic activity in the country has an element of illegality (as suggested by estimates), then it is not an anecdotal or ad-hoc phenomenon. What has this government done to deal with domestic black money, since as estimates suggest 90% of black money is domestic?
Question 8) Funding of political parties is the major avenue where such illicit money finds home. The majority funding of BJP and Congress is opaque. Delhi HC indicted both these parties in March2014 for foreign funding and violations of FEMA. With the obscene display of wealth during elections by these parties, is it BJP’s deliberate strategy to not tackle the menace of illicit money?

1 comment:


    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

    * 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 !

    hemen parekh
    02 Oct 2015


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