Thursday, November 17, 2011

Black money

In indian economy black money is said to have serious consequences. So many people in the higher eclon preach so many things to save india from the I'll effects of black money. The popular Tamil cinema Sivaji speaks the means (but foolish) to use black money usefully. Our economists, policy makers, politicians know much about this and also the ways and means to arrest but do not take effective steps . Why?
First of all stop all cash transactions. Let any purchase/sale even of a Pepsi be done through bank account or card and get the tax to the Govt cut there itself. No further income tax , no filing of return, no exemptions etc ., etc.,. It will reduce circulation of currency and in turn forged/counterfeit currency. Pakistan cannot meddle with our currency. Huge Income Tax Department is not required. Auditors needn't be engaged. They may be used for some other useful things.
Coming to banks of our country, one can see every bank branch having separate cash department, receiving bundles and bundles of currency notes , counting, sorting, transfers, currency chests etc. So many people engaged everyday in handling this heap of currency. Cash management takes most of the time and cost of running the bank branch. Is it worth while? If cash transactions are stopped the bank branches can devote more for developmental activities.
One can see how effectively banks are being used in other countries and every transaction being done through the bank account. Then why it is not being taken up in our country. We talk much on this but do nothing . May be because we do not want to eliminate black money. Politicians can have stuff to talk about in the elections . They can go on blaming each other for the ills of black money. Majority of the citizens think it is not their cup of tea. Someone may do something, sometime. WEREVGO?

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