Monday, January 6, 2014

Black Money Will is missing to curb it.

Tax evasion is due to faulty system of taxation policies and corrupt practices. Black Money generation is very high as people prefer cash transactions which provides scope for evasion of taxes. Evasion is rampant in land deals and high value purchases of gold,silver and diamonds. The very fact that only 43000 persons have crossed the One crore limit of earnings as per the tax returns filed is a farce and any average human being in Mumbai itself will not vouch for this figure. The major lacunae in the system is to track the transactions in cash. If there is a ban on cash transactions above Rs 5000, and if all transactions above Rs 5000 are tracked by insisting on aadhar Cards, or PAN numbers and they are tied to the persons' bank accounts, it would be possible over a period to assess the exact number of persons evading tax and track the black money to some extent.The self employed and many business establishments do not issue any receipt against the purchases even if the amount exceeds Rs 10000. The fact of the matter is that the willingness to fix the problem is not there.

Dr.T.V.Gopalakrishnan
(This comment is in response to the article the menace of black money that appeared in ET)

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