WHY NOT PERIODICAL DEMONETISATION TO CURB BLACK MONEY IN INDIA ?
The critics have been saying that return of more than 90% of the demonetized currency to banking system mean that demonetization has failed. This is a baseless and illogical argument, since the return of the demonetized currency to the banking system does not mean that black money, which is tax evaded money, automatically becomes the legitimate money. The fact is that the tax evaded money getting into the banking system is now being accounted and the owners of such money now being made to pay tax and penalty.
This explains the reason why the tax base has increased considerably.
The critics further argue that the demonetization step has not resulted in rooting out the black money, since black money continues to be generated by evasion of the tax in the post demonetization era. This is true to some extent.
When demonetization was announced , Mr. Modi clearly said that this was only the first step in eradicating black money and corruption and more steps would follow. He followed the demonetization move with several other measures such as anti benami law etc.
As tax evasion and black money generation continues which results in the continued hoarding of high value currency , this situation points to the fact that periodical demonetization of high value currency is needed.
Curbing of tax evasion by demonetization is not a one stop solution and repetitive exercise is the requirement. This is the lesson that post demonetization scenario in India brings out.
N.S.Venkataraman
Nandini Voice for The Deprived
nandinivoice.com more
This explains the reason why the tax base has increased considerably.
The critics further argue that the demonetization step has not resulted in rooting out the black money, since black money continues to be generated by evasion of the tax in the post demonetization era. This is true to some extent.
When demonetization was announced , Mr. Modi clearly said that this was only the first step in eradicating black money and corruption and more steps would follow. He followed the demonetization move with several other measures such as anti benami law etc.
As tax evasion and black money generation continues which results in the continued hoarding of high value currency , this situation points to the fact that periodical demonetization of high value currency is needed.
Curbing of tax evasion by demonetization is not a one stop solution and repetitive exercise is the requirement. This is the lesson that post demonetization scenario in India brings out.
N.S.Venkataraman
Nandini Voice for The Deprived
nandinivoice.com more
Viewed by 19
Good argument sir,the repetitive slogan that it has failed its objective is wrong. Tax base is bigger, digitisation is more. Thinking has changed .One more slow Demonitisation of bigger note is wel come .Hoarders are bust stacking them now. more
Sep 05
Black Money in the form of Currency can be 100% located if 2000, 50 Notes are now replaced with Rs.200/- Notes. As per RBI, Fake Notes of 50 are toomuch more that Fake Notes of 100 as observed in the News of 1st Sept. '18. In the '16 Demonetization, huge Currency in many issues was exchanged through back-doors and all these will now get located in the pre planned proposal that to be concluded by both GOI, RBI . This is fast needed and help the Country and People a lot if Demonetized before end of October, 2018 i.e., this year itself. more
Sep 03
The counterfeit Indian currency ( printed in other countries also) amounting to astronomical figures , used for all sorts of illegal acts is prevented from circulation . I think that was the main achievement of demonetisation. more
Sep 02
